In the latest close session, Toast (TOST) was up +2.25% at $29.04. The stock outpaced the S&P 500’s daily gain of 0.05%. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq lost 0.64%.
Heading into today, shares of the restaurant software provider had gained 10.21% over the past month, outpacing the Computer and Technology sector’s loss of 3.62% and the S&P 500’s gain of 0.61%.
The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. The company is forecasted to report an EPS of $0.32, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing a 20.82% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.35 per share and a revenue of $7.38 billion, representing changes of +51.69% and +19.95%, respectively, from the prior year.
Any recent changes to analyst estimates for Toast should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 remained stagnant. At present, Toast boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Toast is currently trading at a Forward P/E ratio of 21. For comparison, its industry has an average Forward P/E of 18.34, which means Toast is trading at a premium to the group.
The Internet – Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% 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.
