All You Need to Know About Toast (TOST) Rating Upgrade to Buy

Core Viewpoint - Toast (TOST) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - For Toast, the upgrade reflects an improvement in its underlying business, which is expected to drive stock price appreciation [5]. - The Zacks Consensus Estimate for Toast indicates an expected earnings of $0.97 per share for the fiscal year ending December 2025, with a 5.1% increase in estimates over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks based on earnings estimates into five groups, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - The upgrade of Toast to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].