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AMN Healthcare Services (AMN) Gains As Market Dips: What You Should Know

·3 min read

AMN Healthcare Services (AMN) closed at $107.61 in the latest trading session, marking a +0.7% move from the prior day. This move outpaced the S&P 500's daily loss of 1.71%. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.18%.

Prior to today's trading, shares of the health care staffing company had gained 4.23% over the past month. This has outpaced the Medical sector's loss of 5.98% and the S&P 500's loss of 8.68% in that time.

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 $2.33, up 34.68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.09 billion, up 24.74% from the year-ago period.

AMN's full-year Zacks Consensus Estimates are calling for earnings of $11.26 per share and revenue of $5.12 billion. These results would represent year-over-year changes of +40.22% and +28.53%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 remained stagnant. AMN Healthcare Services is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, AMN Healthcare Services is currently trading at a Forward P/E ratio of 9.49. This represents a discount compared to its industry's average Forward P/E of 16.31.

We can also see that AMN currently has a PEG ratio of 2.95. 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 1.65 at yesterday's closing price.

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 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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