The Joint (JYNT) Stock Jumps 10.0%: Will It Continue to Soar?

Company Overview - The Joint Corp. (JYNT) shares increased by 10% to $12.43 in the last trading session, following a higher-than-average trading volume, contrasting with a 2% loss over the previous four weeks [1] - The company has a strong retail and consumer-driven approach, emphasizing convenience and affordability through extended hours and a no-appointment model [2] - The Joint has demonstrated a proven track record of clinic growth, a market-leading position, and a scalable franchising system with extensive geographic reach [2] Financial Performance - In the fourth quarter of 2024, The Joint reported earnings from continuing operations of 6 cents per share, matching the Zacks Consensus Estimate, a significant improvement from a loss of 68 cents per share in the same period last year [3] - The company opened 57 new clinics, refranchised three, and closed 18 clinics (including three relocations) in 2024 [3] - Patient volumes increased to 14.7 million visits in 2024, up from 13.6 million in 2023 [3] - The Joint anticipates system-wide sales for 2025 to be between$ 550 million and $570 million, an increase from$ 530.3 million in 2024 [3] Earnings Expectations - The upcoming quarterly report is expected to show a loss of $0.02 per share, representing a year-over-year change of -133.3%, with revenues projected at$ 12.76 million, down 57.1% from the previous year [4] - The consensus EPS estimate for the quarter has been revised 175% lower over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [5] Industry Context - The Joint is part of the Zacks Medical - HMOs industry, where Centene (CNC) also operates, closing the last trading session at $59.23, down 0.7% [5] - Centene's consensus EPS estimate for its upcoming report has increased by 3.1% over the past month to$ 2.20, representing a year-over-year change of -2.7% [6]