It’s been a busy few weeks at work, and before October kicks off some more busy days, I thought I’d take this week and try to write about a few things that have been on my mind. I hope to write a post each day, and I welcome any comments.
Today, one of my recently volatile stocks, AMN Healthcare Services (AHS). This is a business that thrives when there is a demand for healthcare workers. As the boomers age, this trend seems like a no-brainer, and I like this Motley Fool-recommended company to take advantage.
Nonetheless, there are those who disagree. A recent SA short article claimed that the company has benefited from Obamacare tailwinds which are soon to end.
But with remarkable growth and a PE of 15, I don’t really see this as a particularly risky investment. That said, it is down 25% since late July. And now with a market cap of ~1.6B and TTM sales of 1.7B+, it’s looking pretty cheap. Also check out the growth, from a chart which I’ve updated from this excellent post by KC http://discussion.fool.com/ahs-32274514.aspx.
Revenue EPS Jun 2015 240.9 0.16 Sep 2014 264.4 0.19 Dec 2014 279.6 0.18 Mar 2015 327.5 0.21 Jun 2015 350.0 0.38 Sep 2015 382.9 0.48 Dec 2015 402.6 0.47 Mar 2016 468.0 0.60 Jun 2016 473.7 0.61
35% revenue growth and 61% EPS growth in the June quarter was pretty nice. They’ve had some pretty good acquisitions, which according to this article, http://www.fool.com/investing/2016/08/05/organic-growth-and-…, account for 16% of the growth this quarter. But they also had organic growth of 19%.
The upcoming quarter will be a tougher comp, but they’re still expected to grow revenue 23% and EPS 15%, and hopefully they’ll beat those numbers.
But as we all know, the question is what comes next? I think this company will continue to succeed and that this is an attractive entry point. But what say others? Bargain or bust?