Toast (TOST) closed the most recent trading day at $29.74, moving -2.97% from the previous trading session. The stock’s performance was behind the S&P 500’s daily gain of 0.17%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, added 0.4%.
The restaurant software provider’s shares have seen a decrease of 13.22% over the last month, not keeping up with the Computer and Technology sector’s gain of 0.37% and the S&P 500’s loss of 1.29%.
Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.37, indicating a 48% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.96 billion, up 20.3% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.41 per share and a revenue of $7.44 billion, representing changes of +58.43% and +20.95%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toast. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Toast presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Toast currently has a Forward P/E ratio of 21.78. Its industry sports an average Forward P/E of 20.16, so one might conclude that Toast is trading at a premium comparatively.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
