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AMN Healthcare's (AMN) New Buyout to Aid Healthcare Staffing

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AMN Healthcare Services, Inc. (AMN - Free Report) recently acquired Connetics USA. The buyout is expected to expand AMN Healthcare’s International Staffing business.

It is worth mentioning that international nurse and allied recruitment company, Connetics USA, focuses on nursing and allied professionals’ direct hiring, recruitment and placements.

The latest acquisition is expected to significantly boost AMN Healthcare’s Nurse and Allied Solutions segment globally and solidify its position in the niche space.

Rationale Behind the Buyout

Connetics USA caters to clients throughout the United States (including hospitals) and aids healthcare professional candidates through the immigration and licensure processes post their arrival in the United States. Thus, this buyout is expected to enable AMN Healthcare to add more qualified professionals to its international pipeline of nurses and allied professionals.

Per AMN Healthcare’s management, the most crucial challenge currently plaguing healthcare organizations is the rising shortage of healthcare professionals, which is expected to continue for the next few years. International staffing and recruitment solutions can help address this issue and Connetics USA is expected to aid AMN in bringing more qualified and experienced international professionals to the United States.

Industry Prospects

Per a report by Research and Markets, the global market for healthcare staffing was estimated at $33.8 billion in 2020 and is projected to reach $47.8 billion by 2026 at a CAGR of 6%. Factors like rise in elderly population, growing availability of medical insurance and advancements in healthcare technology are likely to drive the market.

Given the market potential, the latest buyout is likely to provide a significant boost to AMN Healthcare’s business globally.

Recent Development

This month, AMN Healthcare announced its financial results for first-quarter 2022, wherein it registered robust performance across each of its core segments, along with surge in its top and bottom lines.

Price Performance

Shares of the company has gained 0.9% in the past year against the industry’s 62.8% decline and the S&P 500's 3.2% fall.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Other Key Picks

Currently, AMN Healthcare flaunts a Zacks Rank #1 (Strong Buy).

A few other stocks in the broader medical space that investors can consider include Omnicell, Inc. (OMCL - Free Report) , Patterson Companies, Inc. (PDCO - Free Report) and Masimo Corporation (MASI - Free Report) .

Omnicell, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 16%. OMCL’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 13.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Omnicell has lost 18.5% compared with the industry’s 43.1% fall over the past year.

Patterson Companies has an estimated long-term growth rate of 9.9%. PDCO’s earnings surpassed estimates in three of the trailing four quarters, the average beat being 2.7%. It currently carries a Zacks Rank #2 (Buy).

Patterson Companies has lost 11.8% compared with the industry’s 4.7% fall over the past year.

Masimo has an earnings yield of 3.4% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average beat being 4.4%. It currently carries a Zacks Rank #2.

Masimo has lost 36.6% compared with the industry’s 15.4% fall over the past year.


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