In the latest close session, Toast (TOST) was down 3.78% at $34.39. The stock's change was less than the S&P 500's daily loss of 0.99%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, lost 1.58%.
Prior to today's trading, shares of the restaurant software provider had gained 0.39% lagged the Computer and Technology sector's gain of 7.77% and the S&P 500's gain of 3.59%.
The investment community will be closely monitoring the performance of Toast in its forthcoming earnings report. The company is scheduled to release its earnings on November 4, 2025. 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 21.96% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.94 per share and a revenue of $6.08 billion, representing changes of +3033.33% and +22.61%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toast. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.12% lower within the past month. Toast presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Toast is presently trading at a Forward P/E ratio of 37.89. This denotes a premium relative to the industry average Forward P/E of 29.91.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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