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Toast (TOST) Stock Falls Amid Market Uptick: What Investors Need to Know

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Toast (TOST - Free Report) ended the recent trading session at $28.65, demonstrating a -1.34% change from the preceding day's closing price. This change lagged the S&P 500's 0.12% gain on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.

Prior to today's trading, shares of the restaurant software provider had gained 13.26% lagged the Computer and Technology sector's gain of 16.05% and outpaced the S&P 500's gain of 9.3%.

Analysts and investors alike will be keeping a close eye on the performance of Toast in its upcoming earnings disclosure. The company's earnings report is set to go public on May 7, 2026. It is anticipated that the company will report an EPS of $0.28, marking a 40% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.63 billion, up 21.79% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.3 per share and revenue of $7.4 billion. These totals would mark changes of +46.07% and +20.27%, respectively, from last year.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Toast boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Toast is presently being traded at a Forward P/E ratio of 22.34. This represents a premium compared to its industry average Forward P/E of 18.77.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 36% of all industries, numbering over 250.

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.

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

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