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Strength Seen in Carrols Restaurant (TAST): Can Its 6.8% Jump Turn into More Strength?

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Carrols Restaurant Group, Inc. (TAST - Free Report) shares soared 6.8% in the last trading session to close at $7.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.2% gain over the past four weeks.

The price surge was driven by the investors' optimism regarding the company's meaningful and profitable delivery sales as well as implementation of certain cost-saving initiatives that is expected to benefit the company beyond 2021. Also, the federal government's latest stimulus package and acceleration of vaccination drive bode well.

Price and Consensus

Price Consensus Chart for Carrols Restaurant

This restaurant operator is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $371.73 million, up 5.8% 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 Carrols Restaurant, the consensus EPS estimate for the quarter has been revised 15.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TAST 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 >>>>

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