Toast (TOST) closed at $39.95 in the latest trading session, marking a -2.06% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Elsewhere, the Dow saw a downswing of 0.59%, while the tech-heavy Nasdaq appreciated by 0.45%.
The restaurant software provider's stock has dropped by 5.14% in the past month, falling short of the Computer and Technology sector's gain of 5.42% and the S&P 500's gain of 3.44%.
Analysts and investors alike will be keeping a close eye on the performance of Toast in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.25, showcasing a 257.14% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.59 billion, indicating a 21.87% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.97 per share and a revenue of $6.07 billion, indicating changes of +3133.33% and +22.44%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Toast. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Toast possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Toast is currently trading at a Forward P/E ratio of 42.05. This signifies a premium in comparison to the average Forward P/E of 32 for its industry.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Toast, Inc. (TOST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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