Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Toast (TOST), and emphasizes the importance of using these recommendations in conjunction with other research tools like the Zacks Rank to make informed investment decisions [1][5]. Brokerage Recommendations for Toast - Toast has an average brokerage recommendation (ABR) of 1.77, indicating a consensus between Strong Buy and Buy, based on recommendations from 30 brokerage firms [2]. - Out of the 30 recommendations, 18 are classified as Strong Buy, accounting for 60% of the total recommendations, while one is classified as Buy, making up 3.3% [2]. Limitations of Brokerage Recommendations - The article highlights that relying solely on brokerage recommendations may not be wise, as studies show limited success in guiding investors towards stocks with the best price increase potential [5]. - Analysts from brokerage firms often exhibit a strong positive bias due to vested interests, issuing five "Strong Buy" recommendations for every "Strong Sell" [6][11]. Zacks Rank as a Reliable Indicator - The Zacks Rank, which classifies stocks into five groups based on earnings estimate revisions, is presented as a more reliable indicator of a stock's near-term price performance compared to ABR [8][12]. - The Zacks Rank is timely and reflects changes in earnings estimates quickly, unlike the ABR, which may not always be up-to-date [13]. Current Earnings Estimates for Toast - The Zacks Consensus Estimate for Toast's current year earnings remains unchanged at $1.04, indicating steady analyst views on the company's earnings prospects [14]. - Due to the unchanged consensus estimate and other factors, Toast has received a Zacks Rank of 3 (Hold), suggesting caution despite the Buy-equivalent ABR [15].

Core Insights - The article emphasizes the importance of identifying innovative and disruptive technologies that can reshape industries and drive long-term value creation [1] Group 1: Company Insights - The company is focused on equity research to assist investors in making informed decisions through clear and insightful analysis [1] - The company has a beneficial long position in the shares of TOST, indicating confidence in its future performance [2] Group 2: Industry Insights - The industry is characterized by a strong passion for markets and investment research, with a focus on value and growth strategies across various sectors [1] - The engagement with the investment community through platforms like Seeking Alpha highlights the collaborative nature of investment research and analysis [1]

Core Viewpoint - Growth stocks are leading the market and present attractive investment opportunities, with specific recommendations for five stocks to consider for a growth-focused portfolio. Group 1: Nvidia - Nvidia is a major beneficiary of the AI buildout, holding approximately 90% market share in the GPU space, which is crucial for AI workloads [2] - The company’s CUDA software platform and NVLink interconnect system provide a competitive advantage, particularly in large language model training [2] - Current market capitalization is $4.5 trillion, with a gross margin of 70.05% [3][4] Group 2: Alphabet - Alphabet operates its own AI data center and has a complete AI tech stack, including custom AI chips for training its leading LLM, Gemini [5] - The integration of Gemini across its products, including Google Search, has led to increased queries and revenue [6] - Google Cloud's revenue grew by 34% last quarter, indicating strong operating leverage and demand for its Tensor Processing Units (TPUs) [6] Group 3: Pinterest - Pinterest is currently valued at a forward P/E ratio of around 12.5 and has experienced a revenue growth of 17% last quarter [6] - The company is transforming into an AI-powered discovery shopping platform, enhancing its visual search capabilities [6][8] - Its Performance+ suite aids advertisers in creating effective campaigns and improving targeting [8] Group 4: Toast - Toast is a significant player in the SaaS space, providing software solutions for small- and midsized restaurant operators [9] - The company reported a 30% increase in annual recurring revenue (ARR) last quarter, with a 23% rise in new locations using its services [10] - Toast is poised for further growth as it expands into larger chains and international markets [10] Group 5: e.l.f. Beauty - e.l.f. Beauty has gained market share in the mass-market cosmetics sector and continues to expand internationally [11] - The acquisition of the Rhode brand, which achieved over $200 million in sales in under three years, is expected to drive significant growth [13][14] - The brand's recent launch in LVMH's Sephora presents a substantial opportunity for increased distribution and brand awareness [14]

Core Insights - The U.S. retail sales report for November shows a month-over-month increase of 0.6% and a year-over-year increase of 3.1%, indicating strong consumer spending trends [1] Winners - Nonstore retailers, including e-commerce giant Amazon, experienced a sales increase of 7.2% in November, suggesting continued positive momentum for the company [2] - Amazon's growth is further supported by its expanding sponsored ad business, operational efficiencies from robotics and AI, and accelerating growth in its cloud computing unit, AWS [4] - Sporting goods stores saw a notable sales increase of 7.8%, with Nike showing signs of a turnaround, bolstered by significant insider buying from CEO Elliot Hill and Apple CEO Tim Cook [5][7] - Dick's Sporting Goods is also positioned as a potential winner, focusing on experiential retail to attract customers while managing its recent acquisition of Foot Locker [8] - E.l.f. Beauty benefited from a 6.7% year-over-year sales increase in health and personal care stores, supported by its market share growth and the acquisition of Rhode [9][10] - The food services and drinking places category saw a 4.9% sales increase, which is expected to benefit restaurant software provider Toast as it expands its customer base [11] Losers - Furniture stores and building material and garden supply dealers faced negative sales growth, with declines of 1.4% and 2.8%, respectively, impacting companies like RH, which is navigating a challenging market [12] - Home improvement retailers Home Depot and Lowe's have struggled with same-store sales growth, although both have had strong starts in 2026 [14]

We came across a bullish thesis on Toast, Inc. on The Cash Flow Compounder’s Substack. In this article, we will summarize the bulls’ thesis on TOST. Toast, Inc.'s share was trading at $36.20 as of January 12th. TOST’s trailing and forward P/E were 82.27 and 28.74 respectively according to Yahoo Finance. Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, India, and internationally. TOST is emerging as a high-conviction compounder withi ...

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Payments behemoth Fiserv’s Clover unit dominates the small restaurant point-of-sale card processing market with an estimated 20% share, including 175,000 locations, based on an analysis by the financial firm Baird. Fintech Toast follows with an estimated 17% stake, including 145,000 locations, according to the Jan. 7 report from the firm’s research ar ...

Company Performance - Toast (TOST) stock increased by 1.64% to $36.66, outperforming the S&P 500's decline of 0.34% and the Dow's drop of 0.94% [1] - Over the past month, Toast shares gained 4.31%, surpassing the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19% [1] Earnings Expectations - The upcoming earnings report for Toast is anticipated to show an EPS of $0.24, reflecting a 380% increase from the same quarter last year [2] - Quarterly revenue is expected to reach $1.62 billion, marking a 20.99% increase compared to the previous year [2] Annual Projections - For the annual period, earnings are projected at $1.04 per share, indicating a significant increase of 3366.67% from last year, while revenue is expected to remain stable at $6.14 billion [3] Analyst Estimates - Recent adjustments to analyst estimates for Toast are crucial as they reflect current business trends, with positive revisions indicating confidence in performance and profit potential [3] Valuation Metrics - Toast's Forward P/E ratio stands at 29.01, which is higher than the industry average Forward P/E of 25 [6] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 57, placing it in the top 24% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong historical performance, with 1 rated stocks delivering an average annual return of +25% since 1988 [5] - Currently, Toast holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [5]

Core Insights - TOST provides software as a service (SaaS) and hardware solutions specifically tailored for the restaurant industry, indicating a focused market approach [1] Company Overview - TOST operates in a competitive landscape with numerous software firms offering point of sale (POS) payment solutions, but only a select few have achieved significant market presence [1]

Core Insights - Topgolf Callaway Brands Corp. (MODG) is expanding the rollout of the Toast point-of-sale (POS) system to enhance operational efficiency as venue traffic improves [1][4] - The implementation of Toast has led to faster service and better labor efficiency, contributing to increased spending per visit [1][2] - The rollout is expected to continue through 2026, with full implementation targeted by the end of Q2 2026 [1][4] Operational Efficiency - The POS upgrade is facilitating more effective operations during peak visitation periods, improving service execution and supporting increased traffic from recent value initiatives [2] - Management emphasizes the importance of operational efficiency to maintain venue performance as traffic volumes rise [2] Guest Experience Initiatives - Toast will support initiatives aimed at simplifying the guest experience, including pay-at-bay and mobile food ordering, which will be piloted in Q4 2025 [3] - These features are designed to streamline ordering and payment processes, potentially increasing food and beverage spending per visit [3] Standardization and Scalability - The broader goal of the POS transition is to create a standardized and scalable operating model across Topgolf venues [4] - Early productivity benefits from the rollout suggest that technology will play a crucial role in stabilizing venue-level economics as adoption expands [4] Price Performance and Valuation - MODG shares have increased by 48.8% over the past six months, contrasting with a 1% decline in the industry [5] - The company is currently trading at a forward 12-month price-to-sales (P/S) ratio of 0.6, which is lower than industry peers like Acushnet Holdings (1.91) and American Outdoor Brands (0.51) [8] Earnings Estimates - The Zacks Consensus Estimate for MODG's 2026 loss has narrowed over the past 60 days, indicating potential improvements in financial outlook [10]

Core Insights - Toast (TOST) is undergoing a significant transformation in its financial identity, moving away from a low-margin hardware focus towards a higher-margin software model [1] Group 1: Company Transformation - The company is rapidly shedding its low-margin hardware reputation [1] - There is a clear shift towards much higher-margin software offerings [1] Group 2: Analyst Background - The analyst has over a decade of experience in the stock market and a strong background in political economics, providing unique insights into the macroeconomy [1] - The analyst emphasizes a comprehensive and fundamental approach to identifying investment opportunities [1]