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Carrols Restaurant Group (TAST) Stock Sinks As Market Gains: What You Should Know

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Carrols Restaurant Group (TAST - Free Report) closed at $6.10 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.

Prior to today's trading, shares of the restaurant operator had lost 14.82% over the past month. This has lagged the Retail-Wholesale sector's loss of 0.13% and the S&P 500's gain of 0.19% in that time.

Investors will be hoping for strength from Carrols Restaurant Group as it approaches its next earnings release. The company is expected to report EPS of $0.06, up 142.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $476.38 million, up 7.3% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.17 per share and revenue of $1.87 billion. These totals would mark changes of +124.29% and +8.11%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Carrols Restaurant Group. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Carrols Restaurant Group currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Carrols Restaurant Group's current valuation metrics, including its Forward P/E ratio of 36.53. This represents a premium compared to its industry's average Forward P/E of 21.58.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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