AMN Healthcare Services is an Exciting Long Term Investment Opportunity

Photo of author
Written By Elizabeth Monroe

AMN Healthcare Services is a leading nationwide provider of temporary healthcare staffing. The company has experienced significant volatility, particularly in the aftermath of the COVID-19 pandemic, which had both positive and negative impacts on its business.

The pandemic initially drove a boom in travel nursing, but as the demand normalized, AMN saw a correction in its core market. Despite this, the company’s strong fundamentals and strategic initiatives make it an appealing investment for long-term investors.

Current Market Position and Historical Performance

Credits: DepositPhotos

AMN’s stock has faced a sharp decline from its pandemic-era highs, trading from an all-time high of $127.04 in November 2022 to below $60 recently. This drop aligns with the decrease in revenue from $5.2 billion in 2022 to a trailing twelve-month figure of $3.5 billion.

Similarly, diluted EPS has fallen from $9.90 in 2022 to $3.76 TTM. However, AMN’s performance over the past decade shows a consistent growth pattern, with revenue, EPS, and free cash flow all growing at an annual rate above 10%. The company has maintained a median return on invested capital of 15%, underscoring its operational efficiency and profitability.

Long-Term Growth Drivers

  • Demographic Trends and Healthcare Spending

The aging population and increasing healthcare expenditures are significant tailwinds for the healthcare staffing market. Reports indicate that travel nursing is one of the fastest-growing staffing segments, second only to IT.

The global healthcare staffing market is expected to grow at an annual rate of 7.6% through 2030, driven by rising healthcare needs and the prevalence of chronic diseases.

  • Strategic Acquisitions

AMN has a history of growth through acquisitions, having spent over $1.5 billion on acquisitions in the past decade. These acquisitions have been instrumental in driving its growth, contributing to its strong return on invested capital.

The healthcare staffing market remains fragmented, providing ample opportunities for further consolidation. The company’s new CEO, Cary Grace, brings experience in overseeing acquisition integrations, which could bode well for future M&A activities.

  • Platformization and Technological Advancements

The shift towards platform-based staffing solutions is another positive trend for AMN. The company’s AMN Passport App, with 225,000 registered users as of January 2024, exemplifies this shift.

Platforms enable more efficient matching of healthcare professionals with temporary staffing needs, offering cost savings and better service delivery. This platformization trend is expected to continue growing, further benefiting larger players like AMN.

  1. Margin Expansion from Technology Solutions

AMN’s Technology and Workforce Solutions segment, which includes software for language interpretation and vendor management systems, has been growing rapidly.

This segment accounted for 13% of revenue in 2023, up from 4% in 2018, and boasts operating margins of around 45%. As this segment continues to grow, it is expected to contribute significantly to AMN’s overall margin expansion.

Short-Term Challenges

  • Post-Pandemic Correction in Travel Nursing

The travel nursing segment, which constitutes about 70% of AMN’s revenue, is experiencing a correction as the demand normalizes post-pandemic.

Management has indicated that they expect sequential revenue declines in this segment through Q3 2024, with a potential bottoming out in Q4. This uncertainty could lead to further short-term volatility in the stock.

  • Capital Expenditure Adjustments

In response to the current market conditions, AMN has reduced its planned capital expenditures for 2024 by 20%. While this move aims to provide a financial buffer, it also signals caution from management regarding near-term profitability.

  • Debt Levels

AMN carries about $1.3 billion in long-term debt, with a portion in floating-rate revolving credit facilities and the rest in fixed-rate notes maturing in 2027 and 2029.

While the company’s net leverage ratio is within its target range, the debt load remains a consideration for investors, particularly in a rising interest rate environment.

Insider Confidence

A positive indicator is the recent insider buying activity. Between February 27 and March 6, AMN’s directors, including the CEO and CFO, purchased nearly 35,000 shares at market prices, totaling almost $2 million.

This insider buying suggests confidence in the company’s future prospects and may indicate that management believes the stock is undervalued at current levels.

Valuation and Future Potential

Assuming a 10% annual revenue growth rate, slightly improved net margins from the current median of 5.6% due to higher-margin segments, and a modest reduction in shares outstanding, AMN could offer significant upside over the next decade.

If the company can execute its strategy effectively, the stock could provide market-beating returns, potentially achieving an 18% compound annual growth rate (CAGR).

Long Term Potential

Credits: DepositPhotos

AMN Healthcare Services has demonstrated strong historical performance and possesses several long-term growth drivers, including demographic trends, strategic acquisitions, technological advancements, and margin expansion from high-margin segments.

While short-term challenges remain, particularly in the travel nursing segment, the company’s robust fundamentals and insider confidence suggest it is well-positioned for long-term success. Investors with a long-term perspective and a tolerance for short-term volatility may find AMN an attractive addition to their portfolios.


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.