AMN Healthcare (AMN) is forming a cup-with-handle base. AMN stock also now trades above its 50-day moving average on expectations that if the United States enters a recession, the health care sector will be spared.
XThe firm is not technically in the health care industry. It is in the commercial services staffing industry. But as the health care sector ramps up, hospitals and clinics will need more employees. AMN provides permanent and temporary staffing of doctors and nurses to health care facilities throughout the United States. Even in a recession, people still need to spend on health care.
The S&P Health Care Select Sector ETF (XLV) jumped nearly 7% this week after Fed Chairman Jerome Powell aggressively stated his intention to do whatever it takes to bring down inflation, even if it means risking a recession.
AMN stock is still barely below its 200-day line, but its relative strength line is rising. A cup-with-handle pattern appears to be forming from the April 21 high, with a buy point of 107.83, using the June 15 peak.
AMN Stock: Recent Edition To The IBD 50
AMN stock is a recent edition to the IBD 50. The flagship list highlights leading growth stocks with strong relative price strength and top-notch fundamentals.
The stock holds the No. 2 rank among its peers in the Commercial Services-Staffing industry group, behind No. 1-ranked Hudson Global (HSON). AMN has a solid 96 Composite Rating and an EPS rating of 97, according to IBD Stock Checkup. The group itself sits at No. 110 out of IBD's 197 industry groups.
AMN has a 3-year EPS growth rate of 42%. In the upcoming second quarter, analysts surveyed by FactSet expect AMN's earnings to jump 81% to $2.97 a share on sales of $1.37 billion, up 60%. For the year 2022, analysts expect earnings of $10.33 a share, up 29%, on sales of $4.98 billion.
Also, on June 15, the company announced it bought back an additional $250 million in shares under the company's repurchase plan. A day later, analysts at Credit Suisse maintained their buy rating on the stock and increased their target price slightly to 121.
Follow Michael Molinski on Twitter @IMmolinski
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The post AMN Stock Today: This Staffing Leader Is Forming A Base On The Strength Of The Health Care Sector appeared first on Investor's Business Daily.
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