Toast (TOST) closed the most recent trading day at $33.15, moving +1.19% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 1.16%. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.18%.
The restaurant software provider's shares have seen a decrease of 10.69% over the last month, not keeping up with the Computer and Technology sector's loss of 1.07% and the S&P 500's loss of 0.42%.
Investors will be eagerly watching for 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%. Meanwhile, our latest consensus estimate is calling for revenue of $1.62 billion, up 21.14% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.04 per share and a revenue of $6.14 billion, demonstrating changes of +3366.67% and 0%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toast. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Toast is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Toast is currently exchanging hands at a Forward P/E ratio of 26.35. This represents a premium compared to its industry average Forward P/E of 22.98.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toast, Inc. (TOST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
