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The most recent trading session ended with Toast (TOST) standing at $40.92, reflecting a +1.51% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.51%. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, lost 0.28%.
The the stock of restaurant software provider has risen by 10.8% in the past month, leading the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87%.
The upcoming earnings release of Toast will be of great interest to investors. The company's earnings report is expected 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. Our most recent consensus estimate is calling for quarterly revenue of $1.31 billion, up 26.61% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toast. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.15% decrease. Toast presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Toast is presently being traded at a Forward P/E ratio of 103.83. This indicates a premium in contrast to its industry's Forward P/E of 30.86.
Also, we should mention that TOST has a PEG ratio of 2.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 2.24 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.