In the latest close session, Toast (TOST) was down 1.13% at $37.53. This move lagged the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the restaurant software provider had lost 13.49% in the past month. In that same time, the Computer and Technology sector gained 8.98%, while the S&P 500 gained 3.08%.
Market participants will be closely following the financial results of Toast in its upcoming release. On that day, Toast is projected to report earnings of $0.25 per share, which would represent year-over-year growth of 257.14%. Our most recent consensus estimate is calling for quarterly revenue of $1.59 billion, up 21.87% from the year-ago period.
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's also important for investors to be aware of any recent modifications to analyst estimates for Toast. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Toast boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Toast is currently exchanging hands at a Forward P/E ratio of 39.13. This signifies a premium in comparison to the average Forward P/E of 31.03 for its industry.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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