Toast (TOST) closed at $29.46 in the latest trading session, marking a +2.76% move from the prior day. This change outpaced the S&P 500’s 1.05% gain on the day. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.64%.
Shares of the restaurant software provider have appreciated by 7.74% over the course of the past month, underperforming the Computer and Technology sector’s gain of 12.58%, and the S&P 500’s gain of 8.59%.
The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. It is anticipated that the company will report an EPS of $0.28, marking a 40% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.63 billion, indicating a 21.79% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.3 per share and revenue of $7.4 billion, which would represent changes of +46.07% and +20.27%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Toast. 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Toast is currently a Zacks Rank #3 (Hold).
In terms of valuation, Toast is presently being traded at a Forward P/E ratio of 22.05. This indicates a premium in contrast to its industry’s Forward P/E of 19.2.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 37% 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.
