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Toast (TOST) Surpasses Market Returns: Some Facts Worth Knowing

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Toast (TOST - Free Report) closed the most recent trading day at $44.49, moving +2.54% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.14%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.27%.

Shares of the restaurant software provider have appreciated by 4.45% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.36%, and outperforming the S&P 500's gain of 3.97%.

Analysts and investors alike will be keeping a close eye on the performance of Toast in its upcoming earnings disclosure. In that report, analysts expect Toast to post earnings of $0.23 per share. This would mark 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.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.95 per share and revenue of $6 billion. These totals would mark changes of +3066.67% and +21.06%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Toast. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Toast possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Toast is currently trading at a Forward P/E ratio of 45.77. This valuation marks a premium compared to its industry average Forward P/E of 27.71.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 65, positioning it in the top 27% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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