The latest trading session saw Toast (TOST) ending at $35.97, denoting a -1.05% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 1.12%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 2.04%.

Shares of the restaurant software provider witnessed a gain of 0.41% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.05% and the S&P 500's loss of 2.91%.

The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. The company is expected to report EPS of $0.19, up 226.67% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.34 billion, reflecting a 24.7% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.92 per share and a revenue of $6.06 billion, representing changes of +2966.67% and +22.17%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Toast. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Toast is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Toast is currently trading at a Forward P/E ratio of 39.42. This denotes a premium relative to the industry's average Forward P/E of 27.97.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Toast, Inc. (TOST) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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