Toast (TOST) closed the latest trading day at $39.75, indicating a -0.87% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.27%. Meanwhile, the Dow experienced a drop of 0.51%, and the technology-dominated Nasdaq saw an increase of 0.03%.
The restaurant software provider's stock has climbed by 10.65% in the past month, exceeding the Computer and Technology sector's gain of 1.69% and the S&P 500's gain of 4.27%.
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 is expected to report EPS of $0.06, up 185.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.31 billion, up 26.61% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Toast. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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. The Zacks Consensus EPS estimate has moved 2.32% lower within the past month. As of now, Toast holds a Zacks Rank of #3 (Hold).
With respect to valuation, Toast is currently being traded at a Forward P/E ratio of 103.59. This signifies a premium in comparison to the average Forward P/E of 31.7 for its industry.
Also, we should mention that TOST has a PEG ratio of 2.15. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.35.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toast, Inc. (TOST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.