Yahoo Finance Are Investors Undervaluing AMN Healthcare Services (AMN) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is AMN Healthcare Services (AMN). AMN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.96, while its industry has an average P/E of 14.51. Over the past 52 weeks, AMN's Forward P/E has been as high as 18.23 and as low as 8.91, with a median of 12.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMN has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.56.
Finally, investors will want to recognize that AMN has a P/CF ratio of 7.94. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AMN's P/CF compares to its industry's average P/CF of 16.67. Within the past 12 months, AMN's P/CF has been as high as 13.16 and as low as 7.40, with a median of 8.86.
Investors could also keep in mind Surgery Partners (SGRY), an Medical Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Surgery Partners is currently trading with a Forward P/E ratio of 56.09 while its PEG ratio sits at 2.06. Both of the company's metrics compare favorably to its industry's average P/E of 14.51 and average PEG ratio of 1.02.
SGRY's price-to-earnings ratio has been as high as 291.50 and as low as -941.54, with a median of 74.26, while its PEG ratio has been as high as 3.31 and as low as -28.24, with a median of 2.03, all within the past year.
Surgery Partners also has a P/B ratio of 1.22 compared to its industry's price-to-book ratio of 2.69. Over the past year, its P/B ratio has been as high as 2.76, as low as 0.95, with a median of 1.56.
These are only a few of the key metrics included in AMN Healthcare Services and Surgery Partners strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AMN and SGRY look like an impressive value stock at the moment.
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AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
Surgery Partners, Inc. (SGRY) : Free Stock Analysis Report
