Toast (TOST) closed at $26.06 in the latest trading session, marking a +1.64% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.4% for the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.73%.
The restaurant software provider's shares have seen a decrease of 6.12% over the last month, surpassing the Computer and Technology sector's loss of 8.37% and the S&P 500's loss of 7.34%.
Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. In that report, analysts expect Toast to post earnings of $0.28 per share. This would mark year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.63 billion, up 21.79% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.3 per share and a revenue of $7.4 billion, indicating changes of +46.07% and +20.27%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Toast. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Toast boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Toast is currently exchanging hands at a Forward P/E ratio of 19.72. Its industry sports an average Forward P/E of 18.36, so one might conclude that Toast is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
