The start of this year has been a wild ride, to say the least. There has been a lot of market volatility, but the S&P 500 is finally close to reaching positive territory in 2016. Don’t settle for breaking even though.
Below, we outline three companies in the healthcare sector which have significantly outperformed the S&P’s year-to-date performance. The positive growth and value metrics of these small-cap corporations make them attractive buys right now.
AMN Healthcare Services, Inc-(AHS – Snapshot Report)
AMN Healthcare Services is a travel healthcare staffing company, and its stock is a Zacks Rank #2 (Buy). AHS stock is pretty cheap across several valuation metrics, which is why it gets a “B” for Value in our Style Scores.
The company trades at a price-to-sales of just 1.06.AMN’s forward PE is 15.93, which is lower than the industry’s average PE of 17.29.It’s worth noting that AHS has a PEG of just 1.33.
What makes AMN Healthcare Services really stand out are its growth metrics. The staffing company projects EPS growth of 24.19% this year, and has a debt-to-capital of 34.22%.AHS has a net margin of 5.6%, which is way ahead of the industry’s average net margin of just 2.66%.
AMN delivers a trailing twelve month ROE of 25.97%, while the industry’s average ROE is just 11.09%. AMN is growing, and sales are projected to increase by 23.76% this year.
Employer Holdings, Inc-(EIG – Snapshot Report)
Employer Holdings provides workers compensation insurance, with a focus towards insuring small businesses in low to medium hazard industries. The company holds a Zacks Rank #1 (Strong Buy). It’s worth noting that EIG doles out a 1.29% dividend.
Employer Holdings is an especially attractive bargain, as it trades at a price-to-book of just 1.19. The company also trades at a forward PE and price-to-sales of just 11.79 and 1.21, respectively.
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