AMN Healthcare Services (AHS) Flagged As Strong On High Volume
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified AMN Healthcare Services as such a stock due to the following factors:
- AHS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.1 million.
- AHS has traded 114,279 shares today.
- AHS is trading at 2.25 times the normal volume for the stock at this time of day.
- AHS is trading at a new high 7.09% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on AHS:
AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services to healthcare facilities in the United States. It operates through three segments: Nurse and Allied Healthcare Staffing, Locum Tenens Staffing, and Physician Permanent Placement Services. AHS has a PE ratio of 2. Currently there are 5 analysts that rate AMN Healthcare Services a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for AMN Healthcare Services has been 1.0 million shares per day over the past 30 days. AMN Healthcare Services has a market cap of $1.4 billion and is part of the health care sector and health services industry. The stock has a beta of -0.17 and a short float of 7.3% with 2.73 days to cover. Shares are up 50.5% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates AMN Healthcare Services as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 10.2%. Since the same quarter one year prior, revenues rose by 44.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.25, which illustrates the ability to avoid short-term cash problems.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Health Care Providers & Services industry and the overall market, AMN HEALTHCARE SERVICES INC's return on equity exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 295.9% when compared to the same quarter one year prior, rising from $8.50 million to $33.65 million.
- Net operating cash flow has increased to $21.95 million or 41.71% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.26%.
- You can view the full AMN Healthcare Services Ratings Report.
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