The Joint Corp. (JYNT) shares ended the last trading session 10% higher at $12.43. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2% loss over the past four weeks.
The Joint extended its rally for the second straight day, driven by strength in its retail, consumer-driven approach, offering convenience and affordability through extended hours and a no-appointment model. It has a proven track record of clinic growth, a market-leading position and a scalable franchising system with broad geographic reach.
Recently, The Joint reported fourth-quarter 2024 results, wherein earnings from continuing operations stood at 6 cents per share, which matched the Zacks Consensus Estimate. It came against a loss of 68 cents per share in the same period last year. The company opened 57 new clinics, refranchised three and closed 18 (including three relocations) in 2024. Patient volumes also showed growth, with 14.7 million visits performed in 2024 compared with 13.6 million in 2023. Investor sentiment has been further buoyed by The Joint's expectation of 2025 system-wide sales to be within $550-$570 million, up from $530.3 million in 2024.
This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of -133.3%. Revenues are expected to be $12.76 million, down 57.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For The Joint, the consensus EPS estimate for the quarter has been revised 175% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on JYNT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
The Joint is part of the Zacks Medical - HMOs industry. Centene (CNC), another stock in the same industry, closed the last trading session 0.7% lower at $59.23. CNC has returned 6.7% in the past month.
Centene's consensus EPS estimate for the upcoming report has changed +3.1% over the past month to $2.20. Compared to the company's year-ago EPS, this represents a change of -2.7%. Centene currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
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