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AMN Healthcare Services (AMN) Gains But Lags Market: What You Should Know

AMN Healthcare Services (AMN) closed the most recent trading day at $107.50, moving +0.41% from the previous trading session.

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This story originally appeared on Zacks

In the latest trading session, AMN Healthcare Services (AMN) closed at $107.50, marking a +0.41% move from the previous day. This move lagged the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.

- Zacks

Prior to today's trading, shares of the health care staffing company had lost 1.27% over the past month. This has was narrower than the Medical sector's loss of 2.74% and lagged the S&P 500's loss of 0.85% in that time.

AMN Healthcare Services will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMN Healthcare Services to post earnings of $2.25 per share. This would mark year-over-year growth of 125%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 80.8% from the year-ago period.

Any recent changes to analyst estimates for AMN Healthcare Services should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AMN Healthcare Services currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, AMN Healthcare Services is holding a Forward P/E ratio of 16.72. For comparison, its industry has an average Forward P/E of 25.15, which means AMN Healthcare Services is trading at a discount to the group.

Investors should also note that AMN has a PEG ratio of 1.03 right now. 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 was holding an average PEG ratio of 1.58 at yesterday's closing price.

The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.



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