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AMN Healthcare (AMN) Stock Moves Up 12.9%: What's Driving It?
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Shares of AMN Healthcare Services, Inc. (AMN - Free Report) have rallied 12.9% versus the industry's 2.8% decline since its fourth-quarter 2021 earnings release on Feb 17.
The renowned provider of healthcare workforce solutions and staffing services has a market capitalization of $4.84 billion. Its earnings for the fourth quarter surpassed the Zacks Consensus Estimate by 14.3%.
This Zacks Rank #1 (Strong Buy) stock has a VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
The rally was largely driven by strong growth across all three of AMN Healthcare’s reportable segments. The bullish outlook for first-quarter 2022 continues to favor the stock. Its broad range of services beyond healthcare professional staffing and recruitment services also instill investor confidence.
Image Source: Zacks Investment Research
Let’s take a quick look at the important catalysts to understand this positive trend.
Key Growth Drivers
Solid Segmental Performance: AMN Healthcare’s reportable segments have put up robust performances in the fourth quarter. The Nurse and Allied Solutions segment’s revenues skyrocketed 142% year over year. Travel nurse staffing revenues grew 136% year over year, whereas Allied division revenues rose 82% year over year. The Physician and Leadership Solutions segment’s revenues were up 47% year over year, led by 46% growth in Locum tenens revenues. Interim leadership revenues were up 49% year over year. Physician and leadership search businesses witnessed revenue growth of 52% year over year.
The Technology and Workforce Solutions segment’s revenues rose 62% year over year. Language services business revenues grew 24% year over year, while the vendor management systems business improved a whopping 165% year over year.
Broad Array of Services: AMN Healthcare’s business has gradually evolved beyond traditional healthcare staffing. In addition to its healthcare professional staffing and recruitment services, the company’s suite of healthcare workforce solutions includes MSPs, vendor management system (VMS), medical language interpretation services, predictive labor analytics, workforce optimization technology and consulting, clinical labor scheduling, recruitment process outsourcing, revenue cycle solutions and credentialing software services. AMN Healthcare enables clients to build and optimize their healthcare talent to deliver great patient outcomes and experience.
The company has displayed strength in digital health capabilities with its AMN Passport and AMN Cares. The company has also expanded its scalable VMS solution, enabling a wide array of health care facilities to quickly staff and manage their entire range of contingent talent.
Upbeat Q1 Outlook: AMN Healthcare has provided its financial outlook for the first quarter of 2022. The company expects revenues of $1.48-$1.52 billion, suggesting growth of 66-71% from the prior-year figure.
With respect to the Nurse and Allied Solutions segment, the company expects revenues to grow about 82% over the prior-year figure. The Technology and Workforce Solutions segment’s revenues are anticipated to improve around 56% from the prior-year figure. Meanwhile, for the Physician and Leadership Solutions segment, the company projects first-quarter revenue growth of about 18% from the prior-year figure.
Favorable Growth Parameters
For 2022, AMN Healthcare has an expected earnings growth rate of 15.88% compared with the industry’s projected 8.86% growth. Meanwhile, revenues are expected to grow 18.78% on a year-over-year basis compared with the industry’s estimated 14.55% growth.
AMN Healthcare has a current cash flow growth rate of 89.89% compared with the industry’s growth rate of 15.80%.The stock’s return on equity (ROE) stands at 37.95% versus the industry’s 0.71%.
Other Key Picks
Other top-ranked stocks in the broader medical space are NextGen Healthcare, Inc. , Owens & Minor, Inc. (OMI - Free Report) and McKesson Corporation (MCK - Free Report) .
NextGen has an estimated long-term growth rate of 5%. NextGen’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.5%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NextGen has outperformed the industry over the past year. NXGN has gained 15.4% compared with the industry’s 37.7% rise over the past year.
Owens & Minor has a long-term earnings growth rate of 8.8%. Owens & Minor’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 29.5%, on average. It currently flaunts a Zacks Rank #2.
Owens & Minor has outperformed the industry over the past year. OMI has gained 15% against a 15.3% industry decline in the said period.
McKesson has a long-term earnings growth rate of 11.8%. McKesson’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 20.6%, on average. It presently carries a Zacks Rank #2.
McKesson has outperformed the industry over the past year. MCK has gained 57.7% in the said period compared with 9.6% growth of the industry.
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AMN Healthcare (AMN) Stock Moves Up 12.9%: What's Driving It?
Shares of AMN Healthcare Services, Inc. (AMN - Free Report) have rallied 12.9% versus the industry's 2.8% decline since its fourth-quarter 2021 earnings release on Feb 17.
The renowned provider of healthcare workforce solutions and staffing services has a market capitalization of $4.84 billion. Its earnings for the fourth quarter surpassed the Zacks Consensus Estimate by 14.3%.
This Zacks Rank #1 (Strong Buy) stock has a VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
The rally was largely driven by strong growth across all three of AMN Healthcare’s reportable segments. The bullish outlook for first-quarter 2022 continues to favor the stock. Its broad range of services beyond healthcare professional staffing and recruitment services also instill investor confidence.
Image Source: Zacks Investment Research
Let’s take a quick look at the important catalysts to understand this positive trend.
Key Growth Drivers
Solid Segmental Performance: AMN Healthcare’s reportable segments have put up robust performances in the fourth quarter. The Nurse and Allied Solutions segment’s revenues skyrocketed 142% year over year. Travel nurse staffing revenues grew 136% year over year, whereas Allied division revenues rose 82% year over year. The Physician and Leadership Solutions segment’s revenues were up 47% year over year, led by 46% growth in Locum tenens revenues. Interim leadership revenues were up 49% year over year. Physician and leadership search businesses witnessed revenue growth of 52% year over year.
The Technology and Workforce Solutions segment’s revenues rose 62% year over year. Language services business revenues grew 24% year over year, while the vendor management systems business improved a whopping 165% year over year.
Broad Array of Services: AMN Healthcare’s business has gradually evolved beyond traditional healthcare staffing. In addition to its healthcare professional staffing and recruitment services, the company’s suite of healthcare workforce solutions includes MSPs, vendor management system (VMS), medical language interpretation services, predictive labor analytics, workforce optimization technology and consulting, clinical labor scheduling, recruitment process outsourcing, revenue cycle solutions and credentialing software services. AMN Healthcare enables clients to build and optimize their healthcare talent to deliver great patient outcomes and experience.
The company has displayed strength in digital health capabilities with its AMN Passport and AMN Cares. The company has also expanded its scalable VMS solution, enabling a wide array of health care facilities to quickly staff and manage their entire range of contingent talent.
Upbeat Q1 Outlook: AMN Healthcare has provided its financial outlook for the first quarter of 2022. The company expects revenues of $1.48-$1.52 billion, suggesting growth of 66-71% from the prior-year figure.
With respect to the Nurse and Allied Solutions segment, the company expects revenues to grow about 82% over the prior-year figure. The Technology and Workforce Solutions segment’s revenues are anticipated to improve around 56% from the prior-year figure. Meanwhile, for the Physician and Leadership Solutions segment, the company projects first-quarter revenue growth of about 18% from the prior-year figure.
Favorable Growth Parameters
For 2022, AMN Healthcare has an expected earnings growth rate of 15.88% compared with the industry’s projected 8.86% growth. Meanwhile, revenues are expected to grow 18.78% on a year-over-year basis compared with the industry’s estimated 14.55% growth.
AMN Healthcare has a current cash flow growth rate of 89.89% compared with the industry’s growth rate of 15.80%.The stock’s return on equity (ROE) stands at 37.95% versus the industry’s 0.71%.
Other Key Picks
Other top-ranked stocks in the broader medical space are NextGen Healthcare, Inc. , Owens & Minor, Inc. (OMI - Free Report) and McKesson Corporation (MCK - Free Report) .
NextGen has an estimated long-term growth rate of 5%. NextGen’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.5%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NextGen has outperformed the industry over the past year. NXGN has gained 15.4% compared with the industry’s 37.7% rise over the past year.
Owens & Minor has a long-term earnings growth rate of 8.8%. Owens & Minor’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 29.5%, on average. It currently flaunts a Zacks Rank #2.
Owens & Minor has outperformed the industry over the past year. OMI has gained 15% against a 15.3% industry decline in the said period.
McKesson has a long-term earnings growth rate of 11.8%. McKesson’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 20.6%, on average. It presently carries a Zacks Rank #2.
McKesson has outperformed the industry over the past year. MCK has gained 57.7% in the said period compared with 9.6% growth of the industry.