Toast (TOST) closed at $42.54 in the latest trading session, marking a -1.6% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.38%. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.24%.
The restaurant software provider's stock has dropped by 4.13% in the past month, falling short of the Computer and Technology sector's gain of 11.61% and the S&P 500's gain of 6.6%.
The investment community will be closely monitoring the performance of Toast in its forthcoming earnings report. The company is expected to report EPS of $0.23, up 1050% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.54 billion, up 23.69% from the year-ago period.
TOST's full-year Zacks Consensus Estimates are calling for earnings of $0.95 per share and revenue of $6.02 billion. These results would represent year-over-year changes of +3066.67% and +21.42%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Toast. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Toast possesses a Zacks Rank of #4 (Sell).
Looking at its valuation, Toast is holding a Forward P/E ratio of 45.6. This denotes a premium relative to the industry average Forward P/E of 28.63.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 48, placing it within the top 20% of over 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.
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Toast, Inc. (TOST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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