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The Joint (JYNT) Expands Operations to Alaska With 3 Clinics

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The Joint Corp. (JYNT - Free Report) announced that it signed a multi-unit franchise agreement to extend its footprint in Alaska. Per the agreement, the company will open three clinics in the state.

While the first clinic was opened in Wasilla, the second is expected to come in the first quarter of 2023, in Anchorage. The third location will likely have the clinic up and running by fall 2023. JYNT is now present in 40 states in the country. It is focused on expanding its portfolio with quality acquisitions and new openings.

The expansionary move is expected to be a prudent one, given the growing demand for affordable and convenient chiropractic care in the region. The new clinics are expected to increase JYNT’s patient visits. It witnesses almost 11 million patient visits per annum and operates in more than 800 locations in the country.

The move is likely to accelerate The Joint’s franchise clinic growth. For 2022, the company targets to open 110-130 franchised clinic openings, up from the 2021 figure of 110. Furthermore, company-owned or managed clinic growth is likely to be within 30-40 for 2022, up from 32 in 2021. It intends to achieve the target through new greenfield projects and buybacks.

The new clinics are expected to boost The Joint’s performance in the long term. However, the company might witness some hiccups with rising cost levels in the short term.

The Zacks Consensus Estimate for current-year earnings is pegged at 11 cents per share, indicating a decline of 77.1% from the year-ago reported figure. The bottom line has witnessed two downward movements in the past 60 days against none in the opposite direction.

Price Performance

Shares of JYNT have declined 80% in the past year against the 16.9% rise of the industry it belongs to.

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Zacks Rank & Key Picks

The Joint currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are Elevance Health Inc. (ELV - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Elevance Health’s full-year earnings is currently pegged at $29.02 per share, indicating a year-over-year increase of 11.7%. ELV beat earnings estimates in all the past four quarters, with an average surprise of 4.1%.

The Zacks Consensus Estimate for AMN Healthcare’s current year bottom line indicates a 44% improvement from the prior-year reported number. The consensus estimate for AMN’s top line also indicates 30.1% year-over-year growth.

The Zacks Consensus Estimate for UnitedHealth’s 2022 bottom line indicates a 15.8% year-over-year improvement. UNH has witnessed three upward estimate revisions in the past 30 days against none in the opposite direction.

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