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The Joint Corp. (JYNT) Moves 17.8% Higher: Will This Strength Last?

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The Joint Corp. (JYNT - Free Report) shares rallied 17.8% in the last trading session to close at $68.50. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.1% gain over the past four weeks.

Shares rallied on the news that The Joint Corp., a national operator, manager and franchisor of chiropractic clinics will join the S&P SmallCap 600 Index. The move will be effective prior to the market's opening on May 27.

Becoming a member of the S&P SmallCap 600 Index speaks volumes for The Joint Corp.'s feat. It showed resilience even in the face the pandemic. Its rising sales and growth in the number of clinics reflect its strong performance.

The Joint Corp. continues to expand its access to affordable and convenient chiropractic care with a retail footprint that now extends to 34 states. It plans to attain 1,000 units by the end of 2023 from 600 at present.

Price and Consensus

Price Consensus Chart for JYNT

This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of -200%. Revenues are expected to be $16.89 million, up 34.2% 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 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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