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Toast (TOST) Beats Stock Market Upswing: What Investors Need to Know

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Toast (TOST - Free Report) ended the recent trading session at $47.31, demonstrating a +1.7% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.

The restaurant software provider's stock has climbed by 9.85% in the past month, exceeding the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35%.

The upcoming earnings release of Toast will be of great interest to investors. In that report, analysts expect Toast to post earnings of $0.24 per share. This would mark year-over-year growth of 1100%. Alongside, our most recent consensus estimate is anticipating revenue of $1.53 billion, indicating a 23.44% upward movement from the same quarter last year.

TOST's full-year Zacks Consensus Estimates are calling for earnings of $0.95 per share and revenue of $6.01 billion. These results would represent year-over-year changes of +3066.67% and +21.2%, respectively.

Investors might also notice recent changes to analyst estimates for Toast. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Toast presently features a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Toast has a Forward P/E ratio of 49.07 right now. This signifies a premium in comparison to the average Forward P/E of 29.16 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.

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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