Toast (TOST) closed the most recent trading day at $31.31, moving +2.55% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.6%. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.64%.
The stock of restaurant software provider has fallen by 4.41% in the past month, lagging the Computer and Technology sector's gain of 4.03% and the S&P 500's gain of 1.34%.
Market participants will be closely following the financial results of Toast in its upcoming release. The company is expected to report EPS of $0.37, up 48% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.96 billion, indicating a 20.3% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.41 per share and revenue of $7.44 billion, which would represent changes of +58.43% and +20.95%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Toast. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 #3 (Hold).
Looking at valuation, Toast is presently trading at a Forward P/E ratio of 21.69. For comparison, its industry has an average Forward P/E of 20.7, which means Toast is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 105, positioning it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Toast, Inc. (TOST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).