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In the latest market close, Toast (TOST) reached $36.59, with a +0.97% movement compared to the previous day. This change lagged the S&P 500's 1.83% gain on the day. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 2.45%.
Shares of the restaurant software provider witnessed a loss of 5.08% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 3.84% and the S&P 500's loss of 3.31%.
The investment community will be closely monitoring the performance of Toast in its forthcoming earnings report. The company is expected to report EPS of $0.06, up 185.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.31 billion, up 26.45% from the prior-year quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Toast. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, there's been a 2.16% fall in the Zacks Consensus EPS estimate. As of now, Toast holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Toast is currently exchanging hands at a Forward P/E ratio of 91.45. This represents a premium compared to its industry's average Forward P/E of 27.77.
Meanwhile, TOST's PEG ratio is currently 1.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 32, this industry ranks in the top 13% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.