The latest trading session saw Toast (TOST) ending at $36.10, denoting a +0.42% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.74%. On the other hand, the Dow registered a gain of 0.05%, and the technology-centric Nasdaq increased by 1.26%.

Coming into today, shares of the restaurant software provider had gained 1.64% in the past month. In that same time, the Computer and Technology sector lost 6.23%, while the S&P 500 lost 4.77%.

The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. The company is slated to reveal its earnings on May 8, 2025. In that report, analysts expect Toast to post earnings of $0.19 per share. This would mark year-over-year growth of 226.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.34 billion, indicating a 24.7% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.91 per share and a revenue of $6.04 billion, signifying shifts of +2933.33% and +21.82%, respectively, from the last year.

Investors should also pay attention to any latest changes in 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.85% decrease. Right now, Toast possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Toast is holding a Forward P/E ratio of 39.51. For comparison, its industry has an average Forward P/E of 25.94, which means Toast is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 36% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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