Trade-Ideas LLC identified

AMN Healthcare Services

(

AHS

) as a weak 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 $30.2 million.
  • AHS has traded 128,559 shares today.
  • AHS is trading at 3.42 times the normal volume for the stock at this time of day.
  • AHS is trading at a new low 5.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 37. 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 745,700 shares per day over the past 30 days. AMN Healthcare Services has a market cap of $1.7 billion and is part of the health care sector and health services industry. The stock has a beta of -0.01 and a short float of 4.5% with 1.78 days to cover. Shares are up 60.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AMN Healthcare Services as a

buy

. 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, good cash flow from operations and compelling growth in net income. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 6.6%. Since the same quarter one year prior, revenues rose by 39.5%. 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 0.79, 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 1.21, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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 120.6% when compared to the same quarter one year prior, rising from $7.19 million to $15.87 million.
  • Net operating cash flow has significantly increased by 305.91% to $25.00 million when compared to the same quarter last year. In addition, AMN HEALTHCARE SERVICES INC has also vastly surpassed the industry average cash flow growth rate of 14.15%.

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