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In the latest trading session, Toast (TOST) closed at $34.83, marking a +1.07% move from the previous day. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 0.31%.
Heading into today, shares of the restaurant software provider had lost 14.89% over the past month, lagging the Computer and Technology sector's loss of 11.22% and the S&P 500's loss of 7.69% in that time.
The investment community will be closely monitoring the performance of Toast in its forthcoming earnings report. The company is forecasted to report an EPS of $0.19, showcasing a 226.67% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.34 billion, reflecting a 24.8% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.92 per share and revenue of $6.07 billion. These totals would mark changes of +2966.67% and +22.3%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toast. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 39.5% higher. Toast is currently a Zacks Rank #3 (Hold).
Looking at valuation, Toast is presently trading at a Forward P/E ratio of 37.38. For comparison, its industry has an average Forward P/E of 27.15, which means Toast is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 120, this industry ranks in the top 48% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.