The most recent trading session ended with Toast (TOST) at $37.50, reflecting a -1.78% shift from the previous trading day’s closing price. The stock’s change was less than the daily loss of 1.11% for the S&P 500. Meanwhile, the Dow Jones lost 0.77%, and the Nasdaq, a technology-intensive index, lost 1.49%.
Shares of the restaurant software provider have lost 11.58% over the past month, underperforming the Computer and Technology sector’s gain of 5.27% and the S&P 500’s gain of 0.4%.
Market participants will closely monitor Toast’s financial results in the upcoming release. The company is expected to report earnings per share of $0.06, up 185.71% from the same quarter of the previous year. At the same time, our latest consensus estimate is for revenues of $1.31 billion, reflecting an increase of 26.45% from the year-ago quarter.
TOST’s full-year Zacks Consensus Estimates are calling for earnings of $0.03 per share and revenue of $4.93 billion. These results would represent year-over-year changes of +106.38% and +27.6%, respectively.
Investors should also note any recent changes to analyst estimates for Toast. These revisions help demonstrate the ever-changing nature of short-term business trends. As a result, upward estimate revisions reflect analyst positivity toward the company’s business and its ability to generate profits.
Our research shows that these estimate revisions are directly related to impending stock price movement. Investors can take advantage of this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks delivering an average annual return of +25 since 1988 % generated. Over the past month, the Zacks Consensus EPS estimate has moved 107.69% upward. Currently, Toast has a Zacks Rank of #1 (Strong Buy).
Looking at the valuation, Toast currently has a price-to-earnings ratio of 1131.26. Its industry has an average price-to-earnings ratio of 33.42, so one might conclude that Toast is trading at a premium relatively speaking.
Furthermore, it should be noted that TOST currently has a PEG ratio of 23.43. The PEG ratio is similar to the commonly used price-to-earnings ratio, but this measure also takes into account the company’s expected earnings growth. TOST’s sector had an average PEG ratio of 2.39 at yesterday’s close.
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