Schaeffer's Top Stock Picks for '25

Checking In With This Restaurant Name Ahead of Earnings

The security remains up over 39% year-over-year

May 11, 2021 at 11:20 AM
facebook X logo linkedin


The shares of Carrols Restaurant Group Inc (NASDAQ:TAST) are down roughly 2% at $5.77 at last check. The negative price action comes just a few days prior to the major franchisee's first-quarter earnings report, which is due out before the open on Thursday, May 13. Below, we will dive into how the equity has performed on the charts as of late, and explore some of its previous post-earnings activity.   

On the charts, the security has been cooling off from a March 15, roughly two-year high of $8.09. Shares have also slipped below the 40-day moving average, which has kept a tight lid on gains over the past couple of months. Year-over-year, though, TAST remains up 39.5%.

Over the last two years, the equity has had an overall dismal history of post-earnings reactions. More specifically, six of these next-day sessions were lower during its past eight reports, including a 11.6% drop in November. Plus, the security has averaged a post-earnings swing of 10.3% in the last eight quarters, regardless of direction.

From a fundamental point of view, Carrols Restaurant stock is still a decent growth candidate, despite struggling on the bottom-line for the past two years. The company was able to maintain revenue growth during the pandemic, increasing it by 5.8% in 2020. Plus, revenue is up 42% since 2017. And though TAST's net income fell $29.46 million in 2020, the company managed to beat its 2019 net income results by roughly $2.5 million.

The restaurant name will need to increase its cash balance in order to start seeing substantial growth. The company currently holds $64.96 million in cash, with $1.34 billion in debt, making TAST a high-risk, yet high-reward option. It is also worth noting that with a small market cap of close to $300 million, Carrols Restaurant stock has plenty of room to run.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter