Toast (TOST) Ascends While Market Falls: Some Facts to Note

Toast (TOST) closed the most recent trading day at $33.42, moving +2.7% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.21%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq decreased by 2.6%.

The restaurant software provider's shares have seen an increase of 9.16% over the last month, surpassing the Computer and Technology sector's loss of 3.87% and the S&P 500's loss of 0.03%.

The upcoming earnings release of Toast will be of great interest to investors. The company's earnings report is expected on November 3, 2026. The company is predicted to post an EPS of $0.35, indicating a 40% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.96 billion, indicating a 20.3% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.32 per share and a revenue of $7.44 billion, signifying shifts of +48.31% and +20.95%, respectively, from the last year.

Any recent changes to analyst estimates for Toast should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Toast possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Toast is presently trading at a Forward P/E ratio of 24.65. This expresses a premium compared to the average Forward P/E of 20.59 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.

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.