Jim Cramer’s Latest Lightning Round: 10 Stocks to Watch

7. AMN Healthcare Services, Inc. (NYSE:AMN)

Number of Hedge Fund Holders: 21

AMN Healthcare Services, Inc. (NYSE:AMN) is engaged in delivering workforce solutions and staffing services tailored to healthcare facilities throughout the United States. The company operates through three segments, Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions.

Through the Nurse and Allied Solutions segment, it offers services, including travel nurse staffing, local and international placements, as well as allied staffing solutions.

The Physician and Leadership Solutions segment provides a range of services, including locum tenens staffing, interim leadership staffing, executive searches, and permanent physician placements.

Through the Technology and Workforce Solutions segment, the company addresses needs for language services, vendor management systems, and workforce optimization solutions. It offers its services through brands such as Nursefinders, HealthSource Global Staffing, and B.E. Smith.

During his Mad Money episode, Cramer mentioned the previous CEO of the company, Susan R. Salka, and said:

“…since she left, the party’s over. Now, of course, labor costs are not good but she had control over these things, and I don’t think the company’s doing that well.”

Under Salka’s leadership, AMN Healthcare (NYSE:AMN) expanded to become the largest total talent solutions provider in the healthcare workforce sector. This period saw the successful integration of over 20 acquisitions.

AMN Healthcare (NYSE:AMN) management’s recent financial projections point to challenges ahead, with forecasted revenue for the third quarter of 2024 expected to be 20-23% lower compared to the previous year, and 8-10% lower sequentially.

Specifically, the Nurse and Allied Solutions segment is projected to see a decline of 32-34% year-over-year. Furthermore, revenue from the Technology and Workforce Solutions segment is forecasted to decrease by 10-12% year-over-year.

During the second quarter’s earnings call, management commented that current market dynamics reveal that many large clients are reducing their reliance on contingent labor due to strong permanent hiring trends and decreased employee attrition.