Toast (TOST) closed the latest trading day at $35.30, indicating a -0.79% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.63%. At the same time, the Dow added 0.21%, and the tech-heavy Nasdaq gained 1.52%.
Shares of the restaurant software provider have depreciated by 0.28% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.66% and outperforming the S&P 500's loss of 0.7%.
Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 8, 2025. It is anticipated that the company will report an EPS of $0.19, marking a 226.67% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 24.7% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.91 per share and revenue of $6.04 billion. These totals would mark changes of +2933.33% and +21.82%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Toast. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.85% lower. Toast currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Toast is holding a Forward P/E ratio of 39.1. For comparison, its industry has an average Forward P/E of 26.31, which means Toast is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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