Back to top

Image: Bigstock

AMN Healthcare Services (AMN) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

AMN Healthcare Services (AMN - Free Report) closed at $98.47 in the latest trading session, marking a -0.64% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day.

Heading into today, shares of the health care staffing company had gained 4.61% over the past month, outpacing the Medical sector's loss of 4.75% and the S&P 500's gain of 2.91% in that time.

Investors will be hoping for strength from AMN as it approaches its next earnings release, which is expected to be August 5, 2021. In that report, analysts expect AMN to post earnings of $1.47 per share. This would mark year-over-year growth of 77.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $829.37 million, up 36.33% from the year-ago period.

AMN's full-year Zacks Consensus Estimates are calling for earnings of $5.06 per share and revenue of $3.02 billion. These results would represent year-over-year changes of +47.52% and +26.12%, respectively.

Any recent changes to analyst estimates for AMN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AMN is currently a Zacks Rank #2 (Buy).

In terms of valuation, AMN is currently trading at a Forward P/E ratio of 19.58. For comparison, its industry has an average Forward P/E of 32.57, which means AMN is trading at a discount to the group.

It is also worth noting that AMN currently has a PEG ratio of 2.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical Services industry currently had an average PEG ratio of 2.54 as of yesterday's close.

The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AMN in the coming trading sessions, be sure to utilize

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