Back to top

Image: Bigstock

Should Value Investors Buy AMN Healthcare Services (AMN) Stock?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is AMN Healthcare Services (AMN - Free Report) . AMN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.68. This compares to its industry's average Forward P/E of 37.17. AMN's Forward P/E has been as high as 23 and as low as 10.97, with a median of 17.19, all within the past year.

AMN is also sporting a PEG ratio of 1.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMN's PEG compares to its industry's average PEG of 2.45. Over the past 52 weeks, AMN's PEG has been as high as 1.81 and as low as 1.22, with a median of 1.43.

Finally, we should also recognize that AMN has a P/CF ratio of 13. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 32.78. Over the past 52 weeks, AMN's P/CF has been as high as 22.65 and as low as 11.20, with a median of 15.79.

These figures are just a handful of the metrics value investors tend to look at, but they help show that AMN Healthcare Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMN feels like a great value stock at the moment.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


AMN Healthcare Services Inc (AMN) - free report >>

Published in