Toast (TOST) closed the most recent trading day at $41.48, moving +2.04% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.48%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.94%.
Heading into today, shares of the restaurant software provider had lost 4.15% over the past month, lagging the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 2.46%.
The upcoming earnings release of Toast will be of great interest to investors. The company is expected to report EPS of $0.25, up 257.14% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.59 billion, showing a 21.87% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.97 per share and revenue of $6.07 billion, indicating changes of +3133.33% and +22.44%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Toast. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Toast presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Toast is presently being traded at a Forward P/E ratio of 41.91. This indicates a premium in contrast to its industry's Forward P/E of 31.99.
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 Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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