The Joint Corp. (JYNT) shares soared 10.1% in the last trading session to close at $13.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.9% gain over the past four weeks.

The Joint extended its rally for the second straight day, following the strong fourth-quarter 2023 results released on Mar 7. It reported an adjusted earnings per share of 7 cents, which outpaced the Zacks Consensus Estimate of 3 cents. The top line beat the consensus mark by 3.3%. The quarterly results gained on the back of strong organic growth, an increase in the number of clinics, higher system-wide sales, improved patient visits, better new patient conversion and existing patient attrition rates.

Investor sentiment has been further buoyed by The Joint's expectation of 2024 system-wide sales to be within $530-$545 million, up from $488 million in 2023. It is expected to open 60-75 franchised clinics in 2024.

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 -106.7%. Revenues are expected to be $29.4 million, up 3.3% 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 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. is a member of the Zacks Medical - HMOs industry. One other stock in the same industry, Select Medical (SEM), finished the last trading session 0.7% higher at $28.50. SEM has returned 7.2% over the past month.

Select Medical's consensus EPS estimate for the upcoming report has changed -5.3% over the past month to $0.55. Compared to the company's year-ago EPS, this represents a change of -1.8%. Select Medical currently boasts a Zacks Rank of #4 (Sell).

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