Trade-Ideas LLC identified AMN Healthcare Services ( AHS) 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 $27.6 million.
  • AHS has traded 256,934 shares today.
  • AHS is trading at 9.10 times the normal volume for the stock at this time of day.
  • AHS is trading at a new high 5.08% 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 in the United States. The company operates through three segments: Nurse and Allied Healthcare Staffing, Locum Tenens Staffing, and Physician Permanent Placement Services. AHS has a PE ratio of 21. Currently there are 4 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 858,300 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 0.23 and a short float of 15.1% with 8.17 days to cover. Shares are up 9.1% year-to-date as of the close of trading on Wednesday.

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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, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 43.9%. 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 0.63, 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 1.41, which illustrates the ability to avoid short-term cash problems.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When 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 the industry average and significantly exceeds that of the S&P 500.
  • Powered by its strong earnings growth of 105.00% and other important driving factors, this stock has surged by 52.15% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AHS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • AMN HEALTHCARE SERVICES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMN HEALTHCARE SERVICES INC increased its bottom line by earning $1.67 versus $0.69 in the prior year. This year, the market expects an improvement in earnings ($2.12 versus $1.67).

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