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Toast (TOST) Falls More Steeply Than Broader Market: What Investors Need to Know

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Toast (TOST - Free Report) closed the most recent trading day at $46.66, moving -4.46% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.6% for the day. Meanwhile, the Dow experienced a drop of 1.23%, and the technology-dominated Nasdaq saw a decrease of 2.24%.

Coming into today, shares of the restaurant software provider had gained 12.07% in the past month. In that same time, the Computer and Technology sector gained 4.45%, while the S&P 500 gained 2.25%.

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 August 5, 2025. The company's upcoming EPS is projected at $0.24, signifying a 1,100.00% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 23.44% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.95 per share and revenue of $6.01 billion, which would represent changes of +3066.67% and +21.15%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Toast. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Toast holds a Zacks Rank of #4 (Sell).

From a valuation perspective, Toast is currently exchanging hands at a Forward P/E ratio of 51.52. Its industry sports an average Forward P/E of 28.71, so one might conclude that Toast is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 75, putting it in the top 31% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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