In the latest close session, Toast (TOST) was up +1.3% at $30.39. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.62%.
The stock of restaurant software provider has risen by 19.67% in the past month, leading the Computer and Technology sector's loss of 0.53% and the S&P 500's gain of 1.61%.
Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. On that day, Toast is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 33.33%. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing a 20.82% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.35 per share and a revenue of $7.38 billion, demonstrating changes of +51.69% and +19.95%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Toast. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Toast currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Toast has a Forward P/E ratio of 22.18 right now. This indicates a premium in contrast to its industry's Forward P/E of 19.89.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Toast, Inc. (TOST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).