Toast (TOST) shares recently closed at $36.70, down 1.26% and underperforming the S&P 500, extending a 9.16% monthly decline that lagged its sector. Despite this, the restaurant software provider is anticipated to report strong Q2 earnings with an expected 242.86% EPS growth to $0.24 and 21.56% revenue increase to $1.59 billion, alongside robust full-year forecasts. However, the Zacks Consensus EPS estimate has been lowered by 5.12% over the past month, and TOST's Forward P/E of 39.4 represents a premium to its industry average of 29.68, contributing to its current Zacks Rank of #3 (Hold).
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ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Toast (TOST) Stock Slides as Market Rises: Facts to Know Before You Trade Read MoreHide Full Article Toast (TOST - Free Report) closed the most recent trading day at $36.70, moving -1.26% from the previous trading session. This move lagged the S&P 500's daily gain of 0.58%. Shares of the restaurant software provider have depreciated by 9.16% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.37%, and the S&P 500's gain of 3.68%. Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.24, indicating a 242.86% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.59 billion, up 21.56% from the prior-year quarter. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.94 per share and a revenue of $6.07 billion, indicating changes of +3033.33% and +22.34%, respectively, from the former year. Any recent changes to analyst estimates for Toast should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from 1 (Strong Buy) to 5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with 1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.12% lower within the past month. At present, Toast boasts a Zacks Rank of 3 (Hold). Valuation is also important, so investors should note that Toast has a Forward P/E ratio of 39.4 right now. This expresses a premium compared to the average Forward P/E of 29.68 of its industry. The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. See More Zacks Research for These Tickers Normally $25 each - click below to receive one report FREE: Image: Bigstock Toast (TOST) Stock Slides as Market Rises: Facts to Know Before You Trade Toast (TOST - Free Report) closed the most recent trading day at $36.70, moving -1.26% from the previous trading session. This move lagged the S&P 500's daily gain of 0.58%. Shares of the restaurant software provider have depreciated by 9.16% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.37%, and the S&P 500's gain of 3.68%. Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.24, indicating a 242.86% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.59 billion, up 21.56% from the prior-year quarter. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.94 per share and a revenue of $6.07 billion, indicating changes of +3033.33% and +22.34%, respectively, from the former year. Any recent changes to analyst estimates for Toast should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from 1 (Strong Buy) to 5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with 1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.12% lower within the past month. At present, Toast boasts a Zacks Rank of 3 (Hold). Valuation is also important, so investors should note that Toast has a Forward P/E ratio of 39.4 right now. This expresses a premium compared to the average Forward P/E of 29.68 of its industry. The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Toast (TOST) shares have recently underperformed, declining 1.26% on a day the S&P 500 gained 0.58%, contributing to a 9.16% depreciation over the past month, significantly lagging both its sector and the broader market. This negative price action occurs despite robust growth expectations for the restaurant software provider, with Q2 EPS projected to rise 242.86% to $0.24 and revenue by 21.56% to $1.59 billion year-over-year. Full-year estimates are similarly strong, forecasting EPS growth of 3033.33% to $0.94 and revenue of 22.34% to $6.07 billion. However, these strong growth forecasts are tempered by recent analyst sentiment and valuation metrics. The Zacks Consensus EPS estimate for TOST has experienced a 5.12% downward revision over the last month, contributing to its current Zacks Rank of 3 (Hold). Furthermore, the stock trades at a Forward P/E of 39.4, representing a notable premium compared to its industry average of 29.68. While the Internet - Software industry, where TOST operates, boasts a strong Zacks Industry Rank of 85 (top 35%), suggesting positive secular trends, TOST's individual stock performance and analyst estimate revisions present a mixed picture. The market appears to be weighing the impressive projected growth against a premium valuation and recent tempering of near-term earnings expectations.
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