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

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AMN Healthcare Services (AMN) closed at $122.77 in the latest trading session, marking a +1.37% move from the prior day. This change lagged the S&P 500's 2.76% gain on the day. Meanwhile, the Dow gained 2.43%, and the Nasdaq, a tech-heavy index, added 0.25%.

Prior to today's trading, shares of the health care staffing company had gained 21.92% over the past month. This has outpaced the Medical sector's gain of 5.69% and the S&P 500's gain of 4.44% in that time.

AMN Healthcare Services will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2022. The company is expected to report EPS of $2.96, up 80.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.36 billion, up 58.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.41 per share and revenue of $5 billion. These totals would mark changes of +29.64% and +25.49%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AMN Healthcare Services. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. AMN Healthcare Services is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, AMN Healthcare Services currently has a Forward P/E ratio of 11.64. Its industry sports an average Forward P/E of 18.97, so we one might conclude that AMN Healthcare Services is trading at a discount comparatively.

Also, we should mention that AMN has a PEG ratio of 10.48. 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. Medical Services stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices.

The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.

To follow AMN in the coming trading sessions, be sure to utilize Zacks.com.

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