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

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AMN Healthcare Services (AMN - Free Report) closed the most recent trading day at $85.89, moving -1.91% from the previous trading session. This change lagged the S&P 500's 0.15% loss on the day. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 3.16%.

Coming into today, shares of the health care staffing company had lost 5.78% in the past month. In that same time, the Medical sector lost 5.41%, while the S&P 500 lost 5.39%.

Investors will be hoping for strength from AMN Healthcare Services as it approaches its next earnings release. The company is expected to report EPS of $2.36, down 32.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.11 billion, down 28.62% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.28 per share and revenue of $4.11 billion. These totals would mark changes of -30.42% and -21.69%, respectively, from last year.

Any recent changes to analyst estimates for AMN Healthcare Services should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 1.92% lower. AMN Healthcare Services currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AMN Healthcare Services has a Forward P/E ratio of 10.58 right now. Its industry sports an average Forward P/E of 19.48, so we one might conclude that AMN Healthcare Services is trading at a discount comparatively.

It is also worth noting that AMN currently has a PEG ratio of 3.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AMN's industry had an average PEG ratio of 1.5 as of yesterday's close.

The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% 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.

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