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5 Small-Cap Stocks Poised to Pop When the Shutdown Ends

Washington's stubbornness has punished these stocks, but a bounce is in the cards

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Carrols Restaurant Group

Carrols 185It sounds a little too obvious to be true, but apparently, furloughed employees really do stop eating out when they’re not receiving a paycheck, even though they can remain relatively confident they’ll be back to work sooner than later. History says about three weeks’ worth of shutdown starts to take a measurable toll on the nation’s personal consumption.

Larger restaurant chains can handle the lull. A less liquid small-cap name like Carrols Restaurant Group (TAST), however, feels the pain pretty intensely. That’s why shares are down about 8% this month.

Once those 800,000 furloughed employees start getting a paycheck again though, Carrols shares should work their way right back up to where they came from.

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