NEW YORK ( TheStreet) -- AMN Healthcare Services (NYSE: AHS) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally poor debt management.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to $5.56 million or 52.50% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Providers & Services industry and the overall market, AMN HEALTHCARE SERVICES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMN HEALTHCARE SERVICES INC continued to lose money by earning -$1.49 versus -$3.75 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus -$1.49).
  • AHS's very impressive revenue growth greatly exceeded the industry average of 4.2%. Since the same quarter one year prior, revenues leaped by 60.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

AMN Healthcare Services, Inc. provides healthcare staffing and management services in the United States. AMN Healthcare Services has a market cap of $335.3 million and is part of the services sector and diversified services industry. Shares are up 37% year to date as of the close of trading on Tuesday.

You can view the full AMN Healthcare Services Ratings Report or get investment ideas from our investment research center.