Yahoo Finance The Joint (JYNT) Buys Wisconsin Regional Developer Zone Rights
The Joint Corp. JYNT recently announced that it acquired regional developer rights for the Wisconsin region on Jun 15. The chiropractic care provider acquired the rights for $950,000.
The company expects the region to hold a total of 53 clinics, of which one is in the active development phase and 21 are currently operating. The overall demographic modeling of the territory includes additional 31 sites for future development.
The latest acquisition can be viewed as a strong move from the company to boost its footprint in the upper Midwestern U.S. region. This is expected to enhance The Joint’s margin contribution in the franchisee business and will likely accelerate its greenfield project growth.
The company is rapidly enhancing its footprint in the country. The latest acquisition follows its Apr 1 deal of $2.4 million to acquire the regional developer territory of Northern California. As of Mar 31, 2023, the company is present in 870 locations in the United States with 740 franchised clinics and 130 corporate clinics.
In 2023, JYNT plans to open 100-120 new franchised clinics compared with 121 opened in 2022. New greenfield clinics for this year are projected at 8-12 compared with the 2022 level of 16 clinics. It witnesses around 12 million patient visits per annum, which is expected to rise in the future.
While new greenfield projects are likely to increase costs and trim profits in the short run, they are expected to increase JYNT’s bottom line in the long run. The Zacks Consensus Estimate for earnings for the current year is pegged at 30 cents per share, indicating a surge of 275% year over year. The bottom line has witnessed two upward movements in the past 60 days against none in the opposite direction.
Price Performance
Shares of JYNT have declined 1.4% in the past year compared with the 4.9% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
The Joint currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical space include Humana Inc. HUM, Apyx Medical Corporation APYX and Boston Scientific Corporation BSX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Humana’s 2023 earnings indicates an 11.9% year-over-year increase. Humana beat earnings estimates in all the last four quarters, with the average being 8.9%.
The Zacks Consensus Estimate for Apyx Medical’s 2023 earnings indicates a 38.8% improvement from the year-ago reported figure. The consensus estimate for APYX’s 2023 revenues indicates 37.3% year-over-year growth.
The Zacks Consensus Estimate for Boston Scientific’s 2023 bottom line suggests a 14% increase from the 2022 levels. BSX has witnessed 12 upward estimate revisions in the past 60 days against none in the opposite direction.
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