Toast (TOST) closed the most recent trading day at $28.50, moving +1.21% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.36%.
Shares of the restaurant software provider witnessed a gain of 1.11% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 9.34%, and the S&P 500’s gain of 5.98%.
The investment community will be closely monitoring the performance of Toast in its forthcoming earnings report. The company’s earnings per share (EPS) are projected to be $0.28, reflecting a 40% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.63 billion, indicating a 21.79% upward movement from the same quarter last 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 might also notice recent changes to analyst estimates for Toast. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 #3 (Hold).
Digging into valuation, Toast currently has a Forward P/E ratio of 21.66. This signifies a premium in comparison to the average Forward P/E of 18.83 for its industry.
The Internet – Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
