AMN Healthcare Services Pulled From Avondale's Conviction Buy List, Reserved For More Patient Investors

The list was directed toward short-term investments driven by "specific catalysts," and AMN Healthcare Services does not fit that description according to Reece. "We find the stock to be suitable for more patient investors," said the analyst.

Related Link: Cramer's "Lightning Round" Picks And Passes: First Solar, Lending Club, Dominion Resources And More

Reece did acknowledge that "AHS is the leading company in a segment of the US staffing market that is growing much faster than any other." The EV/EBITDA premium is "unusually wide," however, and increasing labor costs are also a concern, as is an estimated "tightening labor supply" in the medical services industry looms.

AMN Healthcare closed Monday trading down 0.40 percent at $37.26.