Toast (TOST) closed the most recent trading day at $32.45, moving -2.52% from the previous trading session. This change lagged the S&P 500's daily loss of 0.48%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.
The restaurant software provider's shares have seen a decrease of 4.56% over the last month, not keeping up with the Computer and Technology sector's gain of 0.4% and the S&P 500's loss of 0.97%.
Analysts and investors alike will be keeping a close eye on the performance of Toast in its upcoming earnings disclosure. The company is expected to report EPS of $0.37, up 48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.96 billion, up 20.3% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.41 per share and revenue of $7.44 billion, indicating changes of +58.43% and +20.95%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Toast possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Toast is presently trading at a Forward P/E ratio of 23.65. This signifies a premium in comparison to the average Forward P/E of 20.07 for its industry.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Toast, Inc. (TOST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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