Home Most Popular Investing Hang onto AMN Healthcare (AMN) Stock for Dear Life

Hang onto AMN Healthcare (AMN) Stock for Dear Life

Hang onto AMN Healthcare (AMN) Stock for Dear Life

AMN Healthcare Services, Inc. is a company that’s been through the wringer soul of healthcare chaos and has managed to survive and thrive. Despite the fact that times have been tough for these guys, they’ve managed to keep their head above water, double-fisting earnings surprise after earnings surprise.

However, it’s not all been sipping Mai Tais on an island of success for AMN Healthcare. They’ve seen their stock plummet in the last year, dropping a jaw-dropping 40.8%, while the healthcare industry as a whole danced its way to a 16.5% increase in the same time frame.

Sure, they may have taken a beating, but, sweetheart, don’t you dare count them out just yet. They’re still standing tall with a market capitalization of $2.66 billion. That’s a heck of a lot of zeros. Plus, AMN’s earnings yield of 11.5% is giving them a run for their money compared to the industry’s negative yield. That’s like showing up to a pie-eating contest and finding out you’re the only one with a sweet tooth.

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Despite the bloodshed, AMN Healthcare is turning into a lean, mean healthcare services machine. They’re no longer just about regular old healthcare staffing. Oh no, they’ve leveled up into a total talent solutions powerhouse, offering everything from MSPs to vendor management systems and medical language interpretation services.

And if that wasn’t enough, they recently announced the launch of ShiftWise Flex, a vendor management system that’s like a souped-up sports car, with all the advanced features and automation that could make other healthcare organizations green with envy.

Their unique MSP program is like a magical potion that’s been helping them grab hold of even more market territory. With approximately $5.3 billion in spend under management and 64% of consolidated revenues flowing through MSP relationships in 2022, AMN is basically like the pied piper of improved patient care and efficiency.

Forget the rearview mirror, we’re all about that forward momentum. Third-quarter 2023 really blew us away with an increase in locum tenens revenues and Language interpretation services revenues. The cherry on top? Their gross margin expanded, whispering sweet nothings in our ears about a bright future.

Downsides? No Sweat

Healthcare Industry Regulations may give them a run for their money, but AMN Healthcare is like the Honey Badger of the healthcare world. Medicare, Medicaid, and insurance reimbursement policy changes may shake things up a bit, but these guys aren’t throwing in the towel that easily. They’ve got the moves to keep on grooving.

Stiff Competition is just a walk in the park for these folks. They’re juggling national, regional, and local competitors, but they’ve got the grace and charm to win over clients and healthcare professionals left, right, and center.

Estimate Trend

Despite the rollercoaster, the estimate has been trending up. The Zacks Consensus Estimate for its earnings per share has moved 0.2% north to $8.09 in the last 90 days. Meanwhile, the forecast for fourth-quarter 2023 revenues is pegged at $795.8 million, indicating a 29.3% decline from the year-ago reported number.

Best Bets

Looking for other strong contenders in the medical space? Let’s talk about some hotshots like DaVita Inc., DexCom, Inc., and Integer Holdings Corporation. They’re burning up the track with their Zacks Ranks and estimated long-term growth rates.

DaVita is all about those gains, with a Zacks Rank #1 and earnings that can’t help but surpass all expectations. Meanwhile, DexCom is carrying a Zacks Rank of 2 and has turned into a lean, mean growth rate machine. Integer Holdings, on the other hand, is flaunting its status as another Zacks Rank of 1, with earnings that never fail to shock and awe.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.