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Here's Why You Should Invest in AMN Healthcare (AMN) Stock

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AMN Healthcare Services, Inc. (AMN - Free Report) is well poised for growth on the back of a broad range of services, and its Healthcare Managed Services Program (“MSP”).

The stock has gained 20%, compared with the industry’s growth of 14.8% over the past three months. Further, the S&P 500 Index rose 7% in the same time frame.

The company — with a market capitalization of $2.63 billion — is a travel healthcare staffing company. The company has a trailing four-quarter earnings surprise of 14.4%, on average.

The stock also has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), are better picks than most.

Let’s take a closer look at the factors that substantiate the company’s Zacks Rank #2.


Key Catalysts

AMN Healthcare’s unique Healthcare MSP is helping it gain market traction. Notably, the program helps streamline the entire workforce planning process, which facilitates delivery of enhanced patient care. This has resulted in a large network of improved patient care and enhanced efficiency.

Since mid-March, the company has deployed more than 10,000 health care professionals through AMN brands, its MSP and VMS affiliate partners and marketplace technology solutions.

AMN Healthcare’s business has gradually evolved beyond traditional healthcare staffing. Notably, the company has become a strategic workforce solutions partner with its clients. Its service portfolio includes vendor management systems, MSP, predictive labor analytics, workforce optimization technology and consulting, clinical labor scheduling, recruitment process outsourcing, mid-revenue cycle management and credentialing software services.

In June 2020, the company introduced a customizable, technology-enabled and clinically based service for businesses and other organizations that want to ensure the health and safety of their employees as they slowly return to workspaces. This new solution is likely to provide a boost to the company’s Technology and Workforce Solutions segment.

Which Way are Estimates Headed?

For 2020, the Zacks Consensus Estimate for revenues is pegged at $2.27 billion, indicating an improvement of 2.1% from the prior year. The same for adjusted earnings per share stands at $3.02, suggesting a decline of 5% from the year-ago reported figure.

Other Stocks to Consider

Some other top-ranked stocks from the broader medical space include West Pharmaceutical Services, Inc. (WST - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and PerkinElmer, Inc. (PKI - Free Report) . While both PerkinElmer and Thermo Fisher sport a Zacks Rank of 1, West Pharmaceuticals carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PerkinElmer has a projected long-term earnings growth rate of 17.4%.

Thermo Fisher has an estimated long-term earnings growth rate of 15%.

West Pharmaceutical has a projected long-term earnings growth rate of 17.4%.

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