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In the latest trading session, Toast (TOST) closed at $39.33, marking a -1.68% move from the previous day. This change lagged the S&P 500's 0.29% loss on the day. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw a decrease of 0.5%.
Heading into today, shares of the restaurant software provider had gained 4.77% over the past month, outpacing the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 2.52% in that time.
The investment community will be closely monitoring the performance of Toast in its forthcoming earnings report. The company is scheduled to release its earnings on February 19, 2025. The company's upcoming EPS is projected at $0.06, signifying a 185.71% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.31 billion, indicating a 26.39% upward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Toast. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.28% downward. Toast is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Toast is currently trading at a Forward P/E ratio of 102.11. For comparison, its industry has an average Forward P/E of 28.9, which means Toast is trading at a premium to the group.
Also, we should mention that TOST has a PEG ratio of 2.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.2 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.