In the latest market close, Toast (TOST) reached $34.29, with a -1.61% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 2.24%. At the same time, the Dow lost 1.73%, and the tech-heavy Nasdaq lost 3.07%.

Coming into today, shares of the restaurant software provider had gained 3.14% in the past month. In that same time, the Computer and Technology sector lost 6.31%, while the S&P 500 lost 4.17%.

Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.19, marking a 226.67% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 24.7% from the year-ago period.

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.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Toast currently has a Zacks Rank of #2 (Buy).

Investors should also note Toast's current valuation metrics, including its Forward P/E ratio of 37.8. This signifies a premium in comparison to the average Forward P/E of 24.5 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many more, on Zacks.com.

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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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