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Toast (TOST) Dips More Than Broader Market: What You Should Know

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In the latest trading session, Toast (TOST - Free Report) closed at $34.80, marking a -3.87% move from the previous day. This move lagged the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.1%.

The stock of restaurant software provider has risen by 4.05% in the past month, leading the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.26%.

Market participants will be closely following the financial results of Toast in its upcoming release. The company is forecasted to report an EPS of $0.24, showcasing a 380% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.62 billion, reflecting a 20.99% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.04 per share and revenue of $6.14 billion. These totals would mark changes of +3366.67% and 0%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Toast. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Toast currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Toast is presently trading at a Forward P/E ratio of 29.11. This valuation marks a premium compared to its industry average Forward P/E of 24.44.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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