The company focuses on the travel-nurse segment in the U.S. Its established network of nurses and strict educational and experience requirements lend the company a narrow economic moat, according to Morningstar. With baby-boomers aging and health care spending on the rise, the company is positioned for long-term growth. A shortage of nurses in the U.S. could eat into margins going-forward, but AMN has expanded its network into Europe, Asia and South Africa to meet excess demand within the U.S.
It has a permanent physician placement division, which enjoys a higher profit spread. AMN delivered a mediocre third-quarter, with organic revenue down 7%. Morningstar proposes a fair-value target of $13.
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