Why the Market Dipped But Toast (TOST) Gained Today

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]