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If You Invested $1000 in AMN Healthcare Services a Decade Ago, This is How Much It'd Be Worth Now

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and 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.

San Diego, CA-headquartered AMN Healthcare Services, Inc. is a travel healthcare staffing company. Its business has evolved beyond traditional healthcare staffing and recruitment services, thereby becoming a strategic total talent solutions partner with its clients. It has expanded its portfolio to serve a diverse and growing set of healthcare talent-related needs. In addition to its healthcare professional staffing and recruitment services, AMN Healthcare’s suite of healthcare workforce solutions includes MSP, vendor management systems (VMS), medical language interpretation services, predictive labor analytics, workforce optimization technology and consulting, clinical labor scheduling, recruitment process outsourcing (RPO), revenue cycle solutions, credentialing software services, and virtual care management services. The company enables its clients to build, manage and optimize their healthcare talent to deliver great patient outcomes and experience.

The company reports through three segments — Nurse and Allied Solutions (75.1% of total FY21 revenues, up 75.9% from FY20), Physician and Leadership Solutions (14.9%, up 27.3%), and Technology and Workforce Solutions (10%, up 75.6%).

Nurse and Allied Solutions segment includes the company’s travel nurse staffing, rapid response nurse staffing and labor disruption, allied staffing, local staffing, and revenue cycle solutions businesses.

The Physician and Leadership Solutions segment includes the company’s locum tenens staffing, healthcare interim leadership staffing, executive search, and physician permanent placement businesses.

The technology and workforce solutions segment includes the company’s language services, VMS, workforce optimization, telehealth, credentialing, and outsourced solutions businesses.

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.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in AMN Healthcare Services ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in October 2012 would be worth $11,595.90, or a 1,059.59% gain, as of October 11, 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 152.16% and gold's return of -9.25% over the same time frame.

Looking ahead, analysts are expecting more upside for AMN.

AMN Healthcare’s robust performance across each of its core segments and surge in its top and bottom lines in second-quarter 2022 are impressive. Continued robust demand for the company’s staffing and other services raises optimism. 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. AMN Healthcare’s second-quarter results were better than expected. Over the past six months, AMN Healthcare has outperformed its industry. Yet, gross margin contraction raises apprehensions. 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.

The stock has jumped 5.45% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022; the consensus estimate has moved up as well.

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