The markets have moved lower on the news that Federal Reserve Chairman Jay Powell might keep rates higher for longer. But there’s no reason to give up hope! Once Powell’s remarks are digested, I think we’ll see markets continue moving up, down, up, down for a while. That volatility will provide opportunities—such as the attractive momentum stock Carrols Restaurant Group, Inc. (TAST), writes Nancy Zambell, editor of Cabot Money Club.

I did a search on momentum stocks just to see which ones may be outperforming the market. I actually found quite a few but after analyzing them, decided one was among the most attractive at this point.

Before I get to TAST, let me explain exactly what momentum implies. From Investopedia, here’s the definition of a momentum stock: “Momentum is the speed or velocity of price changes in a stock, security, or tradable instrument. Momentum shows the rate of change in price movement over a period of time to help investors determine the strength of a trend. Stocks that tend to move with the strength of momentum are called momentum stocks.”

What that means is that investors often find momentum opportunities for trading stocks that seem to be in an upward trend due to certain events or catalysts endemic to the stock or industry. And this company fits that description.

TAST is the largest Burger King franchisee in the US. It also operates as a Popeyes franchisee.

Analyst rank: 1.5

Price target: 9.25

Recent price: 6.56

The catalyst: Retail sales climbed 0.6% in August from July. That was considerably higher than expected (which was 0.1%), the fifth consecutive monthly increase, and 2.5% ahead of last year’s sales.

That paved the way for the industry to move forward. And Carrols is moving faster than most, with its current-year earnings estimate increasing by 3,800% over the past 60 days. Carrols' forecast earnings growth for the current year is 152.9%.

As always, please make sure that this company fits into your personal investing strategy and risk profile before purchasing any shares.

Happy Investing!

Recommended Action: Buy TAST.

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