In the latest close session, Toast (TOST) was down 2.88% at $43.54. The stock's change was less than the S&P 500's daily loss of 0.07%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.03%.
Coming into today, shares of the restaurant software provider had gained 3.18% in the past month. In that same time, the Computer and Technology sector gained 5.58%, while the S&P 500 gained 3.94%.
Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. On that day, Toast is projected to report earnings of $0.23 per share, which would represent year-over-year growth of 1050%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.53 billion, up 23.45% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.95 per share and a revenue of $6 billion, signifying shifts of +3066.67% and +21.06%, respectively, from the last year.
Any recent changes to analyst estimates for Toast should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Toast presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Toast is at present trading with a Forward P/E ratio of 47.29. This indicates a premium in contrast to its industry's Forward P/E of 29.09.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 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.
You can find more information on all of these metrics, and much 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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