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Toast (TOST) Stock Sinks As Market Gains: Here's Why

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In the latest close session, Toast (TOST - Free Report) was down 1.67% at $36.51. The stock's performance was behind the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 0.31%.

Coming into today, shares of the restaurant software provider had lost 17.67% in the past month. In that same time, the Computer and Technology sector gained 7.63%, while the S&P 500 gained 3.15%.

The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. The company is predicted to post an EPS of $0.25, indicating a 257.14% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.59 billion, up 21.87% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $0.97 per share and a revenue of $6.07 billion, demonstrating changes of +3133.33% and +22.44%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Toast. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Toast presently features a Zacks Rank of #2 (Buy).

In the context of valuation, Toast is at present trading with a Forward P/E ratio of 38.28. This denotes a premium relative to the industry average Forward P/E of 31.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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