Toast (TOST) ended the recent trading session at $38.55, demonstrating a +2.34% change from the preceding day's closing price. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, lost 0.16%.
Prior to today's trading, shares of the restaurant software provider had lost 3.21% lagged the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 1.16%.
Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. The company is expected to report EPS of $0.24, up 242.86% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.59 billion, indicating a 21.7% growth compared to the corresponding quarter of the prior year.
TOST's full-year Zacks Consensus Estimates are calling for earnings of $0.94 per share and revenue of $6.08 billion. These results would represent year-over-year changes of +3033.33% and +22.53%, respectively.
Investors might also notice recent changes 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 5.12% lower. Toast presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Toast is currently being traded at a Forward P/E ratio of 39.93. Its industry sports an average Forward P/E of 29.14, so one might conclude that Toast is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% 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.
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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