Toast (TOST) closed at $32.48 in the latest trading session, marking a -3.04% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. On the other hand, the Dow registered a loss of 0.83%, and the technology-centric Nasdaq increased by 0.91%.
The stock of restaurant software provider has fallen by 8.24% in the past month, lagging the Computer and Technology sector's gain of 0.49% and the S&P 500's gain of 0.38%.
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 February 12, 2026. The company is forecasted to report an EPS of $0.24, showcasing a 380% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.62 billion, showing a 21.14% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.04 per share and a revenue of $6.14 billion, indicating changes of +3366.67% and 0%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Toast. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Toast presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Toast is holding a Forward P/E ratio of 26.94. Its industry sports an average Forward P/E of 24.04, so one might conclude that Toast is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Toast, Inc. (TOST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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