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Toast (TOST) Gains But Lags Market: What You Should Know

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The most recent trading session ended with Toast (TOST - Free Report) standing at $27.42, reflecting a +0.92% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 1.08%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq increased by 1.58%.

Coming into today, shares of the restaurant software provider had gained 6.38% in the past month. In that same time, the Computer and Technology sector lost 4.77%, while the S&P 500 gained 0.43%.

Market participants will be closely following the financial results of Toast in its upcoming release. On that day, Toast is projected to report earnings of -$0.02 per share, which would represent year-over-year growth of 89.47%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.23 billion, indicating a 25.45% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.14 per share and a revenue of $4.9 billion, representing changes of +70.21% and +26.71%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toast. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Toast is carrying a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 33% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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