It's a rare company that's grown its profits by more than 100% on average every quarter for the past year. On such company is AMN Healthcare Services, which provides permanent and temporary staffing to hospitals and other medical facilities. On Tuesday, the Relative Strength Rating for AMN Healthcare stock climbed to 76, up from 65 the day before.
The health care industry has been short-handed for years and the current situation makes the shortage more acute. All of this puts AMN Healthcare in a strong position.
AMN Healthcare's Bullish Indicators
The 76 RS Rating means AMN Healthcare's stock price has outperformed 76% of all stocks, regardless of industry, over the past year. It's a good but not great rating. The market's biggest winners often have an RS Rating north of 80 as they begin their largest climbs. However, other indicators are more bullish.
AMN stock has a near-best 95 Composite Rating of a best-possible 99.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
Additionally, the Dallas-based staffing specialist has a 96 EPS Rating and a B- Accumulation/Distribution Rating on an A+ to E scale. The B- rating show that institutional investors like insurance funds and ETFs are buying more shares than selling.
In terms of fundamentals, the company has posted two quarters of rising earnings growth. Sales growth rate has also risen over the same time frame. AMN Healthcare's earnings rose 115%, 98%, 111% and then 195% last quarter, to $2.95 per share. Sales also ramped up during that period from 47% to 41%, 59% and then 116% last quarter, to $1.36 billion.
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AMN Healthcare Services is trying to complete a consolidation with a 129.22 entry. See if the stock can break out in heavy volume.
Peers In Healthcare Group
AMN Healthcare Services earns the No. 3 rank among its peers in the Commercial Services-Staffing industry group. Hudson Global and DLH Holdings are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating tracks share price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database
