AMN Healthcare Services Pocket Pivot and Rising Large Players Volume

Strong technical setup with bullish sentiment from analysts. The company is also a strong seasonal play. The company was also recently ranked #11 on Fortune’s 100 Fastest Growing Companies list.

AMN Healthcare Services chart shows a beautiful setup with rising large players volume and a pocket pivot signal.

AMN Healthcare Services is also a good seasonal play. Over the next 10 weeks, AMN Healthcare Services has on average historically risen by 9.4% based on the past 15 years of stock performance. AMN Healthcare Services has risen higher in 12 of those 15 years over the next 10 week period, corresponding to a historical probability of 80%.

The company recently had their price target raised by Benchmark Co. Analysts at Benchmark Co. raised the price target to $52 from $47. Benchmark has a Buy rating on the stock. Benchmark Co. is one of the most followed analyst firms on Wall Street because of their excellent track record. There are 4 Buy ratings and 1 Hold rating on the stock.

Looking at the yearly performance, AMN Healthcare Services stock did better than 87% of all other stocks. On top of that, AMN also shows a consistent pattern of rising prices.

AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services at acute and sub-acute care hospitals and other healthcare facilities throughout the United States. You can read more about the company on their website.

AMN Healthcare is ranked #11 on Fortune’s 100 Fastest Growing Companies list. The Fortune report ranks publicly traded companies based on three years’ growth in revenues, profits, and stock returns.

I first wrote about AMN stock here. It is now +22% higher. Is it still a good buy today? Yes.

AMN Healthcare Services Stock Chart

The gambit is a continuation pattern. AMN is a good setup pattern. Prices have been consolidating lately. There is a support zone below the current price at $43.21, a stop order could be placed below this zone. We notice that large players showed an interest for AMN in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signals (blue dots). Please review this stock trading lesson on pocket pivots and how to screen for them yourself.

AMN Healthcare Services Review
3.5

Summary

Profitability

AMN's Return On Assets of 9.83% is among the best returns of the industry. AMN outperforms 90% of its industry peers. The industry average Return On Assets is 5.50%. AMN's Return On Equity of 22.99% is among the best of the industry. AMN does better than the industry average Return On Equity of 12.26%. AMN's Profit Margin of 6.01% is among the best returns of the industry. AMN outperforms 81% of its industry peers. The industry average Profit Margin is 2.54%. The Piotroski-F score of AMN is 9. This is a very strong score and indicates great health and profitability for AMN.

Valuation

Compared to an average industry Price/Earning Ratio of 21.09, AMN is valued a bit cheaper than its industry peers. With a Price/Earnings Ratio of 18.55, AMN is valued on the expensive side. With a Forward Price/Earnings Ratio of 15.96, AMN is valued correctly. When comparing the current price to the book value of AMN, we can conclude it is valued correctly. It is trading at 4.14 times its book value. When comparing the Enterprise Value to EBITDA ratio of AMN to the average industry ratio of 11.33, AMN is valued in line with its industry peers. The high PEG Ratio, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company. When comparing the price book ratio of AMN to the average industry price book ratio of 3.16, AMN is valued more expensive than its industry peers.

Growth

The Earnings Per Share has been growing by 46.55% on average over the past 5 years. This is very strong growth. The Earnings Per Share is expected to grow by 13.14% on average over the next 2 years. This is quite good. The EPS growth is accelerating: in the next 2 years the growth will be better than in the last years. Looking at the last year, AMN shows a quite strong growth in revenue. Revenue has grown by 12.64% in the last year. Revenue has been growing by 15.32% on average over the past 5 years. This is quite good. The Earnings Per Share has been growing slightly by 9.56% over the past year.

Health

An Altman-Z score of 4.18 indicates that AMN is not in any danger for bankruptcy at the moment. The Piotroski-F score of AMN is 9. This is a very strong score and indicates great health and profitability for AMN. A Current Ratio of 1.66 indicates that AMN should not have too much problems paying its short term obligations. AMN has a Current Ratio comparable to the industry average, which is at 1.71. AMN has a Quick Ratio of 1.66. This is a normal value and indicates that AMN is financially healthy and should not expect problems in meeting its short term obligations. The Quick Ratio is in line with the industry averages, which is at 1.66. AMN has a Altman-Z score comparable to the industry average, which is at 4.20. When comparing the Debt to Equity Ratio of AMN to the average industry Debt to Equity Ratio of 0.20, AMN required more debt to finance its operations than its industry peers.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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