AMN Healthcare Services, Inc. (AHS): This Growth Burst Is Just the Beginning

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AMN Healthcare Services, Inc. (AHS) is one of the top performing healthcare stocks so far this year. And there are plenty of good reasons why.

AMN Healthcare Services, Inc. (AHS): This Growth Burst Is Just the BeginningAHS is the go-to service for healthcare workers around the nation. If you’re looking for people in healthcare administration, human resources or physicians, lab techs or nurses, AMN Healthcare is your one-stop shop.

Now that the Affordable Care Act is the law of the land, the healthcare system has been changed forever, regardless of what the next president or Congress do.

Healthcare corporations, insurers, hospitals and private medical practices have to adjust their models to maximize their productivity. ACA is about converting a system based on volume of care, to quality of care.

The fact is, many at-risk patients are kept going so they make it to recovery, which means surgery numbers stay strong, while survivability is secondary.

Before ACA, the volume of ‘successful’ surgeries was the number that was important. Now, it’s about survivability. That’s a game changer in many aspects.

What’s to Come for AHS Stock

AHS allows these organizations to make the transition easier, increasing their flexibility in hiring. It also allows healthcare professionals the ability to explore opportunities that have come with the changes.

AMN Healthcare provides everything from temporary, locum tenens and permanent staffing for all levels of service. This also allows more flexibility on the part of the healthcare provider; they don’t have to hire a full-time worker for a seasonal upsurge in business.

It also keeps the healthcare providers focused on delivering quality healthcare and not on human resources.

Starting in San Diego, CA 31 years ago, AHS continues to acquire local and regional players across the U.S. to weave together a nationally connected service. Just this month, AMN Healthcare announced that it is in the midst of acquiring Peak Health Solutions, a Tennessee-based company that outsources healthcare documentation professionals.

By beefing up its administrative side, more hospitals and care facilities are able to keep their administrative costs as low as possible by using a flexible but quality talent pool.

In early May, AHS released its Q1 earnings and, as has been the case for a number of quarters now, it blew away analysts estimates. This time it beat expectations by 22%. Its average beat in the last 4 quarters of reported earnings is 23.6%.

Revenue grew 43% from the year ago quarter and 16% sequentially. Year-over-year organic growth was 28%, partially through new acquisitions that grew market share.

The point is that this is no one-quarter wonder. AHS stock is on an upward trajectory.

And given the fact that AHS stock is up more than 27% year to date, it’s still reasonably priced given its growth potential.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/06/ahs-stock-amn-healthcare-growth-burst/.

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