Toast Inc. (NYSE:TOST) is one of the best up and coming stocks to buy right now. On October 24, Truist analyst Matthew Coad lowered the firm’s price target on Toast to $47 from $51 with a Buy rating on the shares. This sentiment was announced as part of the firm’s broader research note that previewed Q3 2025 earnings in the Payments and FinTech sector, as consumer spending has stayed robust in this sector. However, there is speculation that Q4 forecasts for some firms might disappoint the market. Truist L ...

On CNBC's “Mad Money Lightning Round,” Jim Cramer said he would buy shares of Toast, Inc. (NYSE:TOST), but only after the restaurant management software company reports earnings results on Nov. 4.Supporting his views, Citigroup analyst Bryan Keane, on Oct. 22, initiated coverage on Toast with a Buy rating and announced a price target of $51, while Wells Fargo analyst Jason Kupferberg initiated coverage on the stock with an Overweight rating and announced a price target of $47.Cramer also likes Energy Transf ...

Core Insights - Toast, Inc. (NYSE: TOST) has been rated as a Buy by Freedom Capital Markets, with a price target set at $45, highlighting its successful penetration of the US restaurant market [1][2] - The company has achieved approximately 15% market coverage in US restaurant locations since 2011 [1] - Freedom Capital Markets identifies multiple growth catalysts for Toast, including market share gains in small and medium-sized businesses, opportunities in enterprise, food and beverage retail, and international markets [2][3] Company Overview - Toast, Inc. is an American company that provides financial technology solutions and restaurant management software, offering a cloud-based, all-in-one digital technology platform tailored for the restaurant industry [4] - The platform includes solutions for point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management [4] Growth Potential - The firm believes that the identified opportunities can drive sustained growth in key performance indicators, particularly in net new locations and annualized recurring revenue [3] - Toast may exceed its medium-term targets shared during its May 2024 Investor Day [3]

Earnings Reports - Microsoft Corporation is set to release its first-quarter earnings on October 29, with analysts expecting earnings of $3.66 per share and revenue of $75.36 billion [1] - Goldman Sachs reported third-quarter net revenue of $15.18 billion, a 20% year-over-year increase, surpassing the consensus estimate of $14.10 billion. GAAP earnings were $12.25 per share, up from $8.40 a year ago and above the consensus of $10.86 [3] - Charles Schwab reported adjusted earnings per share of $1.31 for the third quarter, a 70% year-over-year increase, exceeding the analyst consensus estimate of $1.25. Quarterly sales reached $6.135 billion, a 27% year-over-year increase, surpassing the expected $6.009 billion [4] Stock Performance - Goldman Sachs shares fell 1.3% to close at $758.09 [7] - Microsoft shares declined 0.4% to close at $511.61 [7] - Charles Schwab shares decreased by 1% to close at $93.41 [7] - Toast, Inc. shares increased by 0.5% to settle at $37.40 [7]

Company Performance - Toast (TOST) closed at $36.70, down 1.26% from the previous session, underperforming the S&P 500's gain of 0.58% [1] - Over the past month, Toast shares have depreciated by 9.16%, while the Computer and Technology sector gained 6.37% and the S&P 500 gained 3.68% [1] Upcoming Earnings - Toast is expected to report an EPS of $0.24, reflecting a growth of 242.86% year-over-year [2] - Revenue is projected to be $1.59 billion, up 21.56% from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $0.94 per share, indicating a growth of 3033.33% from the previous year [3] - Revenue for the fiscal year is projected at $6.07 billion, representing a 22.34% increase from the prior year [3] Analyst Estimates and Stock Performance - Recent analyst estimate revisions are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3] - The Zacks Consensus EPS estimate has decreased by 5.12% in the past month, and Toast currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Toast has a Forward P/E ratio of 39.4, which is a premium compared to the industry average Forward P/E of 29.68 [6] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 85, placing it in the top 35% of over 250 industries [6]

Core Thesis - Toast, Inc. is viewed positively due to its strong financial position, rapid growth, and strategic positioning in the restaurant technology ecosystem, suggesting it is a compelling investment opportunity [1][4]. Financial Performance - As of September 24th, Toast's share price was $37.53, with trailing and forward P/E ratios of 97.33 and 31.35 respectively [1]. - The company has zero debt, with cash representing approximately 7% of its market capitalization, indicating a solid foundation for growth [2]. - Revenue is growing over 20% year-over-year, reflecting robust adoption of its platform across the restaurant industry [2]. Valuation Metrics - The stock trades at an attractive 35x forward free cash flow, with an adjusted PEG ratio of 1.8x, suggesting the market may be underestimating the company's long-term growth potential [3]. - Analysts project a price target of $60 per share by summer 2026, indicating significant upside from current levels [3]. Strategic Positioning - Toast operates as a comprehensive restaurant operating system, integrating payments with back-office management, which creates strong network effects as restaurants increasingly rely on a unified system [3]. - The combination of rapid growth, financial strength, and strategic positioning makes Toast a standout opportunity for investors seeking scalable SaaS solutions in the foodservice industry [4]. Market Outlook - The company is well-positioned to continue capturing market share while generating high-margin recurring revenue, representing a high-quality, high-growth investment with an attractive risk/reward profile [4]. - Previous coverage highlighted Toast's vertically integrated platform, strong post-COVID recovery, and AI-driven operational insights, with the stock price appreciating approximately 4.5% since then [5].

Core Viewpoint - The article highlights three growth stocks that have experienced significant declines but are expected to rebound, potentially increasing by over 30% in the next 12 months according to Wall Street analysts [1]. Company Summaries 1. Atlassian - Atlassian focuses on collaboration tools for software development and project management, with products like Bitbucket and Jira [2]. - The stock has fallen more than 50% from its 52-week high due to disappointing guidance and insider sales [2]. - Analysts project a 66% upside potential, with 25 out of 32 analysts rating it as a buy or strong buy [3]. - The company's cloud business is a significant factor in its recovery potential, with analysts noting its cloud value proposition has tripled recently [4]. 2. Salesforce - Salesforce is a leader in the CRM market, having dominated for 12 consecutive years with its SaaS model [4]. - The stock is down over 30% from its January peak, primarily due to concerns over the slow returns from its AI initiatives [5]. - The consensus price target indicates a potential increase of approximately 38%, with 43 out of 55 analysts rating it as a buy or better [6]. - The launch of Agentforce, an AI software, has led to over 12,500 closed deals, contributing to analyst optimism [7]. 3. Toast - Toast provides cloud-based restaurant management software, covering various operational aspects for restaurants [8]. - The stock has declined around 25% from its summer high, reflecting a volatile performance [8]. - Among 26 analysts, 13 rated it as a buy or better, with an average price target suggesting a 34% upside potential [10]. - The company achieved a record of 8,500 net new locations added in Q2 2025 and formed a partnership with American Express to enhance customer experiences [11]. Analyst Sentiment - Analysts are generally bullish on the long-term prospects of Atlassian, Salesforce, and Toast, despite recent stock declines [11]. - Among the three, Toast is highlighted for its growth potential, supported by a low PEG ratio of 0.25 [12].

Core Viewpoint - Toast's stock has not recovered from a recent pricing glitch, presenting a buying opportunity for investors despite the company's strong growth fundamentals [1][4][10]. Company Overview - Toast has developed a comprehensive operating system for restaurants, integrating various management functions and increasingly incorporating artificial intelligence into its offerings [5]. - The company generates revenue by collecting a small percentage of every payment processed through its system, aligning its interests with those of its restaurant clients [6]. Recent Performance - In the last quarter, Toast added a record 8,500 net new locations, totaling approximately 148,000, which represents a 24% increase year-over-year [7]. - Subscription revenue increased by 37% to $227 million, while annual recurring revenue (ARR) reached $1.9 billion, up 31% [7]. - Adjusted EBITDA surged by 75% to $161 million, and management has raised its full-year guidance for both revenue and earnings [7]. Market Potential - There are about 750,000 restaurants in the U.S., many of which still use outdated systems, providing significant growth opportunities for Toast [8]. - The company has expanded its offerings to various verticals, including coffee shops, bakeries, hotels, and grocery stores, enhancing its customer base and recurring revenue potential [8]. International Expansion - Toast has entered its fourth international market, launching operations in Australia, alongside existing markets in the U.K., Ireland, and Canada, with further global expansions anticipated [9]. Valuation and Investment Opportunity - Following the stock's decline, Toast's valuation appears attractive, trading at an enterprise value-to-ARR ratio of around 9 times the estimated 2025 ARR of $2.1 billion [10]. - The company's ARR is growing at nearly 30% annually, indicating a strong growth trajectory for a leading software-as-a-service (SaaS) company [10]. - The current disconnect between the stock's performance and the company's fundamentals presents a rare opportunity for investors, especially if strong Q3 results are reported [11].

Core Insights - The article introduces "The Undercovered Dozen," a selection of twelve actionable investment ideas focusing on tickers with less coverage [1] - Inclusion criteria for these undercovered ideas include a market cap greater than $100 million, over 800 symbol page views in the last 90 days, and fewer than two articles published in the past 30 days [1] Group 1 - The initiative aims to highlight both large-cap and small-cap stocks that may present investment opportunities [1] - The weekly review will be provided by analysts to keep investors informed about these undercovered ideas [1]

Core Insights - Toast Inc. (TOST) achieved a 25% revenue growth in Q2 2025, generating $208 million in free cash flow, with adjusted EBITDA at $161 million, reflecting a 35% margin [1][10] - The company added a record 8,500 net new locations, totaling 148,000 locations, a 24% increase year over year, with expectations for continued growth in 2025 [2][10] - TOST is leveraging free cash flow to expand its U.S. SMB restaurant market and international presence, aiming to exceed $100 million in ARR by year-end [3][10] Operational Strength - TOST's operational strength is underscored by a 31% growth in Annual Recurring Revenue (ARR) and a 35% increase in fintech and subscription gross profit [2] - The company has surpassed 10,000 live locations across various segments, indicating robust customer adoption [3] Strategic Expansion - Recent wins, such as partnerships with large QSR brands like Firehouse Subs, are expected to enhance upselling and platform expansion [4] - TOST has entered Australia as its fourth international market, following the UK, Ireland, and Canada, indicating a strategic push for global presence [4] Product Innovation - Focus on product innovation, including the Toast Go 3 Handheld and AI-powered ToastIQ platform, is anticipated to enhance platform stickiness and customer retention [4] Seasonal Considerations - Management cautioned that fourth-quarter margins may be lower due to seasonal payment volume fluctuations and increased tariff expenses in the latter half of the year [5] - Despite seasonal factors, TOST's growth scale and broad customer adoption are expected to support ongoing cash flow generation [5] Competitive Landscape - TOST competes with Oracle, Lightspeed, and Block in the restaurant POS space, each with different market approaches [6] - Oracle reported a negative free cash flow of $362 million, while Lightspeed and Block also faced negative adjusted free cash flows of $1.7 million and $193 million, respectively, indicating TOST's relative strength in cash generation [7][8][9]