Toast (TOST) ended the recent trading session at $35.51, demonstrating a -2.15% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.74%. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.76%.
Prior to today's trading, shares of the restaurant software provider had gained 7.27% outpaced the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
Analysts and investors alike will be keeping a close eye on the performance of Toast in its upcoming earnings disclosure. In that report, analysts expect Toast to post earnings of $0.24 per share. This would mark year-over-year growth of 380%. Our most recent consensus estimate is calling for quarterly revenue of $1.62 billion, up 20.99% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.04 per share and revenue of $6.14 billion, indicating changes of +3366.67% and +23.77%, respectively, compared to the previous year.
It is also important to note the 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Toast is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Toast is currently exchanging hands at a Forward P/E ratio of 35.01. This denotes a premium relative to the industry average Forward P/E of 28.86.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 51, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Toast, Inc. (TOST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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