In the latest close session, Toast (TOST) was down 1.51% at $37.22. The stock's performance was behind the S&P 500's daily gain of 0.4%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.66%.
The stock of restaurant software provider has fallen by 5.43% in the past month, lagging the Computer and Technology sector's gain of 2.27% and the S&P 500's gain of 1.02%.
The upcoming earnings release of Toast will be of great interest to investors. The company is predicted to post an EPS of $0.24, indicating a 242.86% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.59 billion, up 21.7% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.94 per share and a revenue of $6.08 billion, indicating changes of +3033.33% and +22.53%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Toast. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 5.12% lower. As of now, Toast holds a Zacks Rank of #3 (Hold).
Digging into valuation, Toast currently has a Forward P/E ratio of 40.06. This represents a premium compared to its industry average Forward P/E of 29.42.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% 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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