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The Joint Corp. (JYNT) Surges 10.0%: Is This an Indication of Further Gains?

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The Joint Corp. (JYNT - Free Report) shares soared 10% in the last trading session to close at $14.48. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.1% loss over the past four weeks.

Increased optimism over the resumption of elective procedures by the seniors, which were delayed due to pandemic-related constraints primarily drove The Joint's stocks higher. The pent-up demand for such services is likely to increase footfall at JYNT's clinics. Also, at the Oppenheimer 23rd Annual Consumer Growth & E-Commerce Conference, the company highlighted its growth opportunity and reiterated financial guidance for 2023.

This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $29.85 million, up 19.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For The Joint Corp., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 Corp. belongs to the Zacks Medical - HMOs industry. Another stock from the same industry, Select Medical (SEM - Free Report) , closed the last trading session 0.5% higher at $28.97. Over the past month, SEM has returned 2.7%.

Select Medical's consensus EPS estimate for the upcoming report has changed -7.1% over the past month to $0.44. Compared to the company's year-ago EPS, this represents a change of +2.3%. Select Medical currently boasts a Zacks Rank of #4 (Sell).


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