Toast (TOST) closed the most recent trading day at $28.57, moving -3.51% from the previous trading session. This change lagged the S&P 500’s 0.28% loss on the day. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
The stock of restaurant software provider has risen by 18.44% in the past month, leading the Computer and Technology sector’s loss of 1.22% and the S&P 500’s gain of 1.64%.
The upcoming earnings release of Toast will be of great interest to investors. The company’s earnings per share (EPS) are projected to be $0.32, reflecting a 33.33% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.87 billion, indicating a 20.82% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.35 per share and a revenue of $7.38 billion, signifying shifts of +51.69% and +19.95%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Toast. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.84% higher. Toast is currently a Zacks Rank #3 (Hold).
In terms of valuation, Toast is currently trading at a Forward P/E ratio of 21.89. This indicates a premium in contrast to its industry’s Forward P/E of 19.93.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
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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This article originally published on Zacks Investment Research (zacks.com).
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