Small-Cap Stocks to Buy: AMN Healthcare Services, Inc. (AMN)
AMN Healthcare Services, Inc. (NYSE:AMN) is a leader in healthcare workforce solutions and staffing services to healthcare facilities.
While healthcare policy may be subject to legislative changes, the long-term trends for increased care (demographics of an aging population) and more personalized care will remain, which supports a healthy operating environment for AMN.
AMN provides a valuable service of bridging the supply of workers and the demand from hospitals with qualified professionals and vetted credentials, so that top-notch healthcare can be provided in a pinch, while AMN handles the back office tasks. Thus, economies of scale will play to the company’s advantage as it grows. As it grows, it will also build stronger relationships with its clients, which will lead to additional scale.
The main profit driver for the company is its largest division, Travel Nurse Staffing. Q2 2017 showed revenues up 9% YOY with favorable trends in price and volume. With demand dynamics in AMN’s favor and high double-digit growth in the Solutions divisions too, it can continue well into coming quarters.