In the latest close session, Toast (TOST) was up +1.01% at $30.11. The stock's change was more than the S&P 500's daily loss of 0.03%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.01%.
Shares of the restaurant software provider witnessed a loss of 19.37% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.26%, and the S&P 500's gain of 0.53%.
The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. On that day, Toast is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 48%. Our most recent consensus estimate is calling for quarterly revenue of $1.96 billion, up 20.3% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.41 per share and a revenue of $7.44 billion, indicating changes of +58.43% and +20.95%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Toast. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Toast is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Toast is currently exchanging hands at a Forward P/E ratio of 21.18. This expresses a premium compared to the average Forward P/E of 19.86 of its industry.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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).