Toast (TOST) ended the recent trading session at $38.80, demonstrating a +1.81% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.89%.
Heading into today, shares of the restaurant software provider had gained 1.55% over the past month, outpacing the Computer and Technology sector's loss of 0.5% and the S&P 500's gain of 0.16%.
The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. The company is slated to reveal its earnings on November 4, 2025. The company's earnings per share (EPS) are projected to be $0.24, reflecting a 242.86% increase from the same quarter last year. 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.94 per share and revenue of $6.08 billion, which would represent changes of +3033.33% and +22.53%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Toast. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 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 40.4. This indicates a premium in contrast to its industry's Forward P/E of 29.4.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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