Trade-Ideas LLC identified

Carrols Restaurant Group

(

TAST

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Carrols Restaurant Group as such a stock due to the following factors:

  • TAST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.2 million.
  • TAST has traded 53.895499999999998408384271897375583648681640625 options contracts today.
  • TAST is making at least a new 3-day high.
  • TAST is mentioned 1.00 times per day on StockTwits.
  • TAST has not yet been mentioned on StockTwits today.
  • TAST is currently in the upper 20% of its 1-year range.
  • TAST is in the upper 35% of its 20-day range.
  • TAST is in the upper 45% of its 5-day range.
  • TAST is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TAST:

Carrols Restaurant Group, Inc., through its subsidiaries, operates franchisee restaurants of Burger King. As of January 3, 2016, it operated 705 Burger King restaurants in 16 states of the United States. The company was founded in 1960 and is headquartered in Syracuse, New York. Currently there are 2 analysts that rate Carrols Restaurant Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Carrols Restaurant Group has been 348,000 shares per day over the past 30 days. Carrols Restaurant Group has a market cap of $519.9 million and is part of the services sector and leisure industry. The stock has a beta of -0.06 and a short float of 3.1% with 4.78 days to cover. Shares are up 24.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Carrols Restaurant Group as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk.

Highlights from the ratings report include:

  • TAST's revenue growth has slightly outpaced the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 18.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 120.51% and other important driving factors, this stock has surged by 69.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Despite the current debt-to-equity ratio of 1.90, it is still below the industry average, suggesting that this level of debt is acceptable within the Hotels, Restaurants & Leisure industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.40 is very low and demonstrates very weak liquidity.
  • The gross profit margin for CARROLS RESTAURANT GROUP INC is rather low; currently it is at 19.85%. Regardless of TAST's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, TAST's net profit margin of 3.06% is significantly lower than the industry average.

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