Trade-Ideas LLC identified

AMN Healthcare Services

(

AHS

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $33.1 million.
  • AHS has traded 486,528 shares today.
  • AHS traded in a range 366.2% of the normal price range with a price range of $4.14.
  • AHS traded below its daily resistance level (quality: 29 days, meaning that the stock is crossing a resistance level set by the last 29 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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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 22. 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 815,300 shares per day over the past 30 days. AMN Healthcare Services has a market cap of $2.1 billion and is part of the health care sector and health services industry. The stock has a beta of 0.30 and a short float of 12.3% with 6.39 days to cover. Shares are up 36.2% year-to-date as of the close of trading on Friday.

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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, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 14.3%. Since the same quarter one year prior, revenues rose by 42.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 112.00% and other important driving factors, this stock has surged by 47.51% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains 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 ($2.24 versus $1.67).
  • 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 111.9% when compared to the same quarter one year prior, rising from $12.21 million to $25.87 million.
  • 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.

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