Toast (TOST) ended the recent trading session at $31.52, demonstrating a +1.32% change from the preceding day's closing price. This change outpaced the S&P 500's 0.54% gain on the day. On the other hand, the Dow registered a gain of 1.05%, and the technology-centric Nasdaq increased by 0.56%.
Shares of the restaurant software provider have depreciated by 8.55% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.44%, and the S&P 500's gain of 0.74%.
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 February 12, 2026. It is anticipated that the company will report an EPS of $0.24, marking a 380% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.62 billion, indicating a 21.14% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.04 per share and revenue of $6.14 billion, which would represent changes of +3366.67% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Toast. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Toast is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Toast is presently being traded at a Forward P/E ratio of 25.02. This valuation marks a premium compared to its industry average Forward P/E of 22.53.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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