In the latest close session, Toast (TOST) was up +1.64% at $36.66. The stock's performance was ahead of the S&P 500's daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.
Shares of the restaurant software provider witnessed a gain of 4.31% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1%, and the S&P 500's gain of 1.19%.
The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. The company is expected to report EPS of $0.24, up 380% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.62 billion, up 20.99% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.04 per share and a revenue of $6.14 billion, signifying shifts of +3366.67% and 0%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Toast. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 past month, the Zacks Consensus EPS estimate has remained steady. As of now, Toast holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Toast is currently exchanging hands at a Forward P/E ratio of 29.01. This represents a premium compared to its industry average Forward P/E of 25.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% 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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