Zacks Equity Research
In the latest trading session, AMN Healthcare Services (AMN) closed at $85.06, marking a +1.69% move from the previous day. This change outpaced the S&P 500’s 1.3% gain on the day. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.
Coming into today, shares of the health care staffing company had lost 9.57% in the past month. In that same time, the Medical sector lost 3.29%, while the S&P 500 lost 2.95%.
AMN Healthcare Services will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.36, down 32.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, down 28.62% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.28 per share and revenue of $4.11 billion, which would represent changes of -30.42% and -21.69%, respectively, from the prior year.
Any recent changes to analyst estimates for AMN Healthcare Services should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.46% higher. AMN Healthcare Services is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AMN Healthcare Services is holding a Forward P/E ratio of 10.11. For comparison, its industry has an average Forward P/E of 19.65, which means AMN Healthcare Services is trading at a discount to the group.
Investors should also note that AMN has a PEG ratio of 3.04 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. AMN’s industry had an average PEG ratio of 1.61 as of yesterday’s close.
The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 Zacks.com.
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