AMN Healthcare Services (AHS) Is Today's Strong And Under The Radar Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified AMN Healthcare Services ( AHS) as a strong and under the radar 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 $7.8 million.
  • AHS is making at least a new 3-day high.
  • AHS has a PE ratio of 33.6.
  • AHS is mentioned 1.29 times per day on StockTwits.
  • AHS has not yet been mentioned on StockTwits today.
  • AHS is currently in the upper 20% of its 1-year range.
  • AHS is in the upper 35% of its 20-day range.
  • AHS is in the upper 45% of its 5-day range.
  • AHS is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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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 33.6. 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 415,300 shares per day over the past 30 days. AMN Healthcare Services has a market cap of $1.1 billion and is part of the health care sector and health services industry. The stock has a beta of 0.97 and a short float of 3.3% with 5.17 days to cover. Shares are up 18.2% year-to-date as of the close of trading on Tuesday.

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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 increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and solid stock price performance. We feel these 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 net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Health Care Providers & Services industry average. The net income increased by 18.4% when compared to the same quarter one year prior, going from $8.36 million to $9.90 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 18.9%. Since the same quarter one year prior, revenues rose by 12.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.66, 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 1.35, which illustrates the ability to avoid short-term cash problems.
  • AMN HEALTHCARE SERVICES INC has improved earnings per share by 17.6% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, AMN HEALTHCARE SERVICES INC's EPS of $0.69 remained unchanged from the prior years' EPS of $0.69. This year, the market expects an improvement in earnings ($0.90 versus $0.69).
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 82.77% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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