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Toast (TOST) Stock Slides as Market Rises: Facts to Know Before You Trade

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Toast (TOST - Free Report) closed the most recent trading day at $36.70, moving -1.26% from the previous trading session. This move lagged the S&P 500's daily gain of 0.58%.

Shares of the restaurant software provider have depreciated by 9.16% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.37%, and the S&P 500's gain of 3.68%.

Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.24, indicating a 242.86% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.59 billion, up 21.56% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.94 per share and a revenue of $6.07 billion, indicating changes of +3033.33% and +22.34%, respectively, from the former year.

Any recent changes to analyst estimates for Toast should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 5.12% lower within the past month. At present, Toast boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Toast has a Forward P/E ratio of 39.4 right now. This expresses a premium compared to the average Forward P/E of 29.68 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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