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Toast (TOST) Exceeds Market Returns: Some Facts to Consider

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Toast (TOST - Free Report) closed the most recent trading day at $26, moving +1.25% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.08% for the day. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.07%.

The restaurant software provider's stock has dropped by 0.35% in the past month, exceeding the Computer and Technology sector's loss of 4.62% and lagging the S&P 500's loss of 0.21%.

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 August 6, 2024. In that report, analysts expect Toast to post earnings of -$0.02 per share. This would mark year-over-year growth of 89.47%. In the meantime, our current consensus estimate forecasts the revenue to be $1.23 billion, indicating a 25.45% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.14 per share and revenue of $4.9 billion. These totals would mark changes of +70.21% and +26.71%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Toast. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Toast is carrying a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 39% echelons of all 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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