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AMN Stock Down Despite WorkWise Launch to Enhance Healthcare Delivery

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AMN Healthcare Services, Inc. (AMN - Free Report) launched an innovative technology suite, WorkWise, last Wednesday. The suite is expected to unify the company’s technologies into one single technology offering.

Per AMN Healthcare, WorkWise has been designed to streamline workforce processes by combining the capabilities of quantifying staffing demand with predictive scheduling, automated workforce management and enhanced clinician engagement using AI technology. The technology suite will likely empower healthcare systems to efficiently source the appropriate talent, while effectively managing costs.

The latest launch is expected to significantly boost AMN Healthcare’s Technology and Workforce Solutions business and solidify its foothold in the healthcare space.

Likely Trend of AMN Stock Following the News

Following the announcement on Oct. 2, shares of the company moved nearly 2.8% south to $38.64 at yesterday’s close.

Historically, the company has gained a high level of synergies from its product launches. Although the latest launch is likely to be beneficial for AMN’s top-line growth going forward, the stock declined overall since the announcement despite a slight gain yesterday.

AMN Healthcare currently has a market capitalization of $1.47 billion. It has an earnings yield of 8.3%, higher than the industry’s 3.6%. In the last reported quarter, AMN delivered an earnings surprise of 30.7%.

Significance of the Launch of AMN Healthcare’s WorkWise

Per AMN Healthcare, WorkWise is completely integrated with healthcare organizations’ internal systems. This is expected to enable hospitals to optimize personnel for any type of job (permanent, per diem, contract), sourcing from internal and external talent, to reduce costs and predict staffing needs with greater precision. The solution will likely leverage automation and data analysis to provide insights and build engaged talent networks for effective workforce management and increased speed-to-fill for staffing needs.

AMN Healthcare’s management believes that WorkWise will be an integrated solution with multiple capabilities that can work together to address complex workforce challenges in the healthcare industry. It is expected to provide a full end-to-end solution for hospitals and healthcare systems, which is built to adapt and evolve with their needs.

Industry Prospects in Favor of AMN

Per a report by Grand View Research, the global healthcare workforce management system market was valued at $1.9 billion in 2023 and is anticipated to witness a CAGR of 13.2% between 2024 and 2030. Factors like the shift toward value-based reimbursements and the increasing adoption of telehealth technologies and AI-driven analytics are likely to drive the market.

Given the market potential, the latest launch will likely provide a significant impetus to AMN Healthcare’s business.

AMN Healthcare’s Notable Launches

In August, AMN Healthcare launched Strategic Partnership Solutions. It aims to transform language access programs in healthcare organizations by providing comprehensive language services and strategic support to organizations.

In July, AMN Healthcare introduced a new teletherapy platform, Televate. Per the company, it has been designed to increase access to therapy services for students nationwide.

AMN’s Share Price Performance

Shares of the company have lost 50.7% in the past year against the industry’s 7.5% rise and the S&P 500's 30.9% growth.

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Image Source: Zacks Investment Research

AMN Healthcare’s Zacks Rank & Key Picks

Currently, AMN carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Baxter International Inc. (BAX - Free Report) and Boston Scientific Corporation (BSX - Free Report) .

DaVita, sporting a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 17.5%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 24.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DaVita’s shares have gained 74.8% compared with the industry’s 31.7% rise in the past year.

Baxter, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10%. BAX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 3.7%.

Baxter has gained 0.7% compared with the industry’s 22.9% rise in the past year.

Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.

Boston Scientific’s shares have rallied 62.4% compared with the industry’s 22.9% rise in the past year.

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