Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- AMN Healthcare Services (NYSE: AHS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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- 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 turned its bottom line around by earning $0.11 versus -$1.49 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.11).
- 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 121.8% when compared to the same quarter one year prior, rising from -$26.90 million to $5.86 million.
- AHS's revenue growth trails the industry average of 17.0%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 500.00% and other important driving factors, this stock has surged by 120.99% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- Net operating cash flow has significantly increased by 135.85% to $11.51 million when compared to the same quarter last year. Despite an increase in cash flow of 135.85%, AMN HEALTHCARE SERVICES INC is still growing at a significantly lower rate than the industry average of 1197.12%.
-- Written by a member of TheStreet Ratings Staff