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Bull of the Day: AMN Healthcare Services (AHS)

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AMN Healthcare Services (AHS) is a $2 billion medical staffing company that specializes in temporary/travel and permanent assignments across the US.

They provide physician and nursing recruitment and placement services for thousands of hospitals, clinics, medical centers, government facilities, and other healthcare organizations.

The company is expected to reach revenues of $1.86 billion this year, representing 27% year-over-year growth. And the bottom line is strong too with the current Zacks Consensus EPS estimate at $2.24 from three analysts, for 36% annual profit growth.

Next year's growth projections are not as strong, but still impressive at 9% on the top line and 11.3% at the bottom.

New Highs on Strong Employment Trends

After finding strong support at $34 in May following a 22% earnings beat, AHS shares barely flinched during the Brexit correction.

The stock hit new all-time highs just above $41 on June 8 and only pulled back to $38 in late June. The month of July has seen nothing less than 5 new highs as the strong jobs data, especially in the Healthcare sector, bodes well for second quarter results due on August 4.

According to the Labor Department's May JOLTS report (Job Openings and Labor Turnover Survey), which was released on Tuesday July 12, data for May in the healthcare and social assistance category were positive for healthcare staffing. Job openings growth accelerated to 10.4% YoY on a seasonally-adjusted basis from 3.4% in April while growth in "quits" also saw an increase to 10.6% in May from 8.5% in April.

Intelligent Healthcare Labor Solutions

To provide insight into how AMN is more than a staffing, recruiting and placement firm, a testimonial from a customer that required specialized consulting is appropriate.

The client was a major nonprofit healthcare provider who needed a new staffing structure. Here's what the chief nursing executive said about AMN's approach to the problem and the solid outcomes, courtesy of the AMN website Testimonials page...

"Our large organization did not have true centralized staffing, so AMN Consultants came in, worked side-by-side with us and helped put together a fully functional staffing office. With the help of these outside experts, we were able to execute our goals much more quickly and more efficiently and to do what's right for our patients.

"Implemented solutions resulted in dramatically increased staffing efficiency and effectiveness. Spending on agency staff and payroll costs declined, saving the healthcare system approximately $5.6 million annually."

With this approach to intelligent, system-focused solutions, AMN Healthcare Services appears to be an important player in a growing field. And the Zacks Rank has been spotting its positive earnings momentum all year.

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