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If You Invested $1000 in AMN Healthcare Services 10 Years Ago, This Is How Much You'd Have Now

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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in AMN Healthcare Services (AMN - Free Report) ten years ago? It may not have been easy to hold on to AMN for all that time, but if you did, how much would your investment be worth today?

AMN Healthcare Services' Business In-Depth

With that in mind, let's take a look at AMN Healthcare Services' main business drivers.

Headquartered in San Diego, CA, AMN Healthcare Services is a travel healthcare staffing company. It recruits and places nurses, physicians, and other healthcare professionals in travel or permanent assignments in acute-care facilities, physician practice groups, and other healthcare facilities.

The company currently reports through three segments — Nurse and Allied Solutions, Locum Tenens Solutions and Other Workforce Solutions.

Nurse and Allied Solutions provides services for acute-care facility, permanent staff nurses for medical practice and experienced home care nurse staffing, interim nurse leaders.

Locums Tenens Solutions physicians can act during staffing gaps created by vacancies, vacations and periods of high demand.

Meanwhile, Workforce Solutions offers the most comprehensive suite of innovative workforce solutions, ranging from traditional staffing and recruitment to managed services programs, vendor management systems, in-house resource pool management and recruitment process outsourcing.

AMN Healthcare’s unique Healthcare MSP is helping the company gain market traction. Notably, the program helps streamline the entire workforce planning process which facilitates the delivery of improved patient care. This has resulted in a large network of improved patient care and improved efficiency.

2021 at a Glance

In 2021, revenues amounted to $3.98 billion, up 66% from the 2020 figure.

Nurse and Allied Solutions revenues amounted to $2.99 billion (75% of net sales). The Physician and Leadership Solutions revenues were $0.59 billion (15%) and Technology and Workforce Solutions revenues were $0.39 billion (10%).

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in AMN Healthcare Services ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in June 2012 would be worth $17,553.19, or a 1,655.32% gain, as of June 6, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 221.47% and gold's return of 9.78% over the same time frame.

Looking ahead, analysts are expecting more upside for AMN. AMN Healthcare ended first-quarter 2022 with better-than-expected results. It saw robust results across each of its core arms, and a surge in its top and bottom lines in the quarter. A tight labor market, creating a high demand for the company’s business, is encouraging. Adjusted operating margin expansion bodes well. The recent Connetics USA buyout looks promising. Strength in the healthcare Managed Services Program (MSP) and a broad array of services augurs well. A strong solvency position is an added plus. Over the past six months, AMN Healthcare has outperformed its industry. Yet, gross margin contraction raises apprehensions about the stock. Changing marketplace conditions and the consolidation of healthcare delivery units pose a challenge to AMN Healthcare. Other headwinds like healthcare industry regulations and stiff competition persist. Shares have gained 7.50% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.


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