Why Toast (TOST) Outpaced the Stock Market Today

Toast (TOST) closed at $41.98 in the latest trading session, marking a +1.6% move from the prior day. This change outpaced the S&P 500's 0.36% gain on the day. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 0.51%.The the stock of restaurant software provider has risen by 11.05% in the past month, leading the Computer and Technology sector's of 0% and the S&P 500's gain of 2.11%.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's earnings per share (EPS) are projected to be $0.06, reflecting a 185.71% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.31 billion, showing a 26.61% escalation compared to the year-ago quarter.Investors might also notice 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.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.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 generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.43% lower within the past month. Toast currently has a Zacks Rank of #3 (Hold).Looking at its valuation, Toast is holding a Forward P/E ratio of 106.74. This expresses a premium compared to the average Forward P/E of 31.23 of its industry.It's also important to note that TOST currently trades at a PEG ratio of 2.21. 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. The Internet - Software industry currently had an average PEG ratio of 2.34 as of yesterday's close.The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.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.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks