- Oops!Something went wrong.Please try again later.
AMN Healthcare Services, Inc. (NYSE:AMN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.
After the upgrade, the ten analysts covering AMN Healthcare Services are now predicting revenues of US$2.7b in 2021. If met, this would reflect a notable 14% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 114% to US$3.18. Previously, the analysts had been modelling revenues of US$2.4b and earnings per share (EPS) of US$2.36 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.1% to US$84.20 per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on AMN Healthcare Services, with the most bullish analyst valuing it at US$86.00 and the most bearish at US$48.00 per share. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting AMN Healthcare Services' growth to accelerate, with the forecast 14% growth ranking favourably alongside historical growth of 7.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AMN Healthcare Services is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, AMN Healthcare Services could be worth investigating further.
Better yet, our automated discounted cash flow calculation (DCF) suggests AMN Healthcare Services could be moderately undervalued. You can learn more about our valuation methodology on our platform here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.