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Should You Hold AMN Healthcare Services (AMN) Despite Headwinds?

Soumya Eswaran
·3 min read

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Value Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The firm focuses on companies with strong balance sheets and attractive cash flows with compelling valuations rather than following market trends. The strategy outperformed the benchmark Russell 2000 Value Index in the first quarter and generated gains across 11 sectors in which it was invested, on an absolute basis. Overall stock selection effects contributed to the performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.

ClearBridge Small Cap Value Strategy highlighted stocks like AMN Healthcare Services, Inc. (NYSE:AMN), in the first quarter 2024 investor letter. AMN Healthcare Services, Inc. (NYSE:AMN) offers healthcare workforce solutions and staffing services to healthcare facilities. The one-month return of AMN Healthcare Services, Inc. (NYSE:AMN) was -5.94%, and its shares lost 49.83% of their value over the last 52 weeks. On June 18, 2024, AMN Healthcare Services, Inc. (NYSE:AMN) stock closed at $52.53 per share with a market capitalization of $1.996 billion.

ClearBridge Small Cap Value Strategy stated the following regarding AMN Healthcare Services, Inc. (NYSE:AMN) in its first quarter 2024 investor letter:

"Stock selection in the health care sector was the main detractor during the period. AMN Healthcare Services, Inc. (NYSE:AMN), which provides health care workforce solutions, also detracted. The downturn in outsourced medical professionals continues as many hospitals focus on full-time hiring. Despite these headwinds, we continue to own the company as our thesis for long-term demand for health care professionals remains intact."

A healthcare professional in scrubs, busy at work at a hospital.

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AMN Healthcare Services, Inc. (NYSE:AMN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held AMN Healthcare Services, Inc. (NYSE:AMN) at the end of the first quarter which was 27 in the previous quarter. In the first quarter, AMN Healthcare Services, Inc. (NYSE:AMN) generated revenue of $821 million which was in line with expectations. While we acknowledge the potential of AMN Healthcare Services, Inc. (NYSE:AMN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

ClearBridge Small Cap Value Strategy added AMN Healthcare Services, Inc. (NYSE:AMN) to its portfolio in the fourth quarter 2023. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.