In the latest close session, Toast (TOST - Free Report) was up +2.25% at $29.04. The stock outpaced the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq lost 0.64%.
Heading into today, shares of the restaurant software provider had gained 10.21% over the past month, outpacing the Computer and Technology sector's loss of 3.62% and the S&P 500's gain of 0.61%.
The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. The company is forecasted to report an EPS of $0.32, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing a 20.82% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.35 per share and a revenue of $7.38 billion, representing changes of +51.69% and +19.95%, respectively, from the prior year.
Any recent changes to analyst estimates for Toast should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Toast boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Toast is currently trading at a Forward P/E ratio of 21. For comparison, its industry has an average Forward P/E of 18.34, which means Toast is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
California Public Employees Retirement System cut its holdings in shares of Toast, Inc. (NYSE: TOST) by 20.9% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 671,880 shares of the company's stock after selling 177,043 shares during the quarter. California
Key Takeaways Dave looks more attractive to add now, while Toast suits investors willing to wait for new initiatives.Dave's revenues rose 47%, as member growth, higher spending and disciplined acquisition fueled momentum.Toast reached 171,000 locations, with rising profitability and growth paths in AI and enterprise markets. Toast, Inc. (TOST - Free Report) and Dave Inc. (DAVE - Free Report) deal with different parts of fintech, but both use software and data to replace older, more expensive systems. Toast has built a broad operating platform for restaurants, combining payments, software, hardware, lending and now AI tools. Dave focuses on consumers who need low-cost banking and short-term liquidity, using its CashAI underwriting system to manage risk and personalize credit access.
Toast offers greater scale, a large merchant network and several paths into enterprise, international and retail markets. Dave is smaller and more concentrated, yet it is growing faster, producing strong margins and expanding beyond ExtraCash into a wider credit relationship.
The key question is not simply which company has the better product. Investors must weigh Toast’s durable platform and wider reach against Dave’s faster operating momentum, sharper unit economics and higher exposure to credit, funding and regulatory risks for diversified long-term portfolios.
The Case for TOSTToast’s advantage is the breadth of its restaurant platform. Its software, payments, hardware and fintech products are deeply tied to daily operations, making the service difficult to replace. The company ended the first quarter with about 171,000 live locations, up 22% year over year, while annualized recurring run-rate rose 26% to $2.2 billion. That scale gives Toast more data and chances to add products.
Toast IQ could deepen that advantage. The assistant uses restaurant-specific sales, labor, menu and guest data, and Toast said operators at more than 125,000 locations used it during the first quarter. Early usage centered on revenue, inventory and marketing questions. While the opportunity is clear, investors still need evidence that engagement becomes sustained revenues rather than simply a useful feature.
Expansion beyond independent restaurants also matters. Hungry Howie’s selected Toast for roughly 500 locations, showing the platform can handle complex enterprise operations. Toast is also building in international markets and supporting hospitality brands operating across the United Kingdom and United States. These moves widen the addressable market, but they bring heavier product, support and sales requirements than the core business.
Financially, Toast is balancing growth with improving profitability. Recurring gross profit increased 27%, adjusted EBITDA reached $179 million, and management raised full-year guidance. Still, GPV per location declined 1%, hardware and services remain a drag, and new markets require continued investment. Compared with Dave, Toast offers diversification and lower credit concentration, but its larger base may make rapid growth harder to sustain.
The Case for DAVEDave’s appeal starts with its growth engine. First-quarter revenues increased 47% to $158.4 million, supported by 18% growth in monthly transacting members and 24% growth in average revenue per user. New-member additions rose 22% to 695,000, while customer acquisition cost stayed at $18. This combination suggests Dave can scale without giving up marketing discipline.
Credit performance makes the story compelling. ExtraCash originations climbed 37% to $2.1 billion, yet the 28-day past-due rate improved to 1.69%, its lowest first-quarter level on record. CashAI appears to be expanding access while keeping losses controlled. Unlike Toast, whose fintech exposure is tied mainly to merchant payments, Dave benefits when underwriting improves, and members use more liquidity products.
The next leg comes from deeper member relationships. Dave Flex, a pay-in-four card product, is being tested as an alternative to traditional credit cards and buy-now-pay-later offers. It uses CashAI and can work across merchants without repeated applications. Revenue contribution is not expected this year, but the product gives Dave a credible route to higher engagement and a larger share of member spending.
The Coastal Community Bank funding arrangement strengthens that route. Moving ExtraCash originations to an off-balance-sheet structure should unlock liquidity and reduce funding costs while allowing Dave to keep investing in growth and repurchases. Adjusted EBITDA rose 57% to $69.3 million, with a 44% margin, and guidance increased. Regulatory, partner and credit risks remain meaningful, but Dave’s faster growth, improving loss trends and expanding product set create the stronger upside case.
How Do Estimates Compare for TOST & DAVE?The Zacks Consensus Estimate for Toast’s 2026 and 2027 sales implies year-over-year growth of 19.95% and 17.84%, respectively. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 51.69% and 27.04%, respectively. Over the past 60 days, estimates for TOST’s 2026 and 2027 EPS have been revised in opposite directions, giving us a mixed view.
For Toast:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Dave’s 2026 and 2027 sales calls for year-over-year growth of 28.85% and 19.93%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised upward over the past week. The figures suggest a year-over-year increase of 27.47% and 28.63%, respectively.
For Dave:
Image Source: Zacks Investment Research
Price Performance and Valuation of TOST & DAVEOver the past three months, Dave shares have rallied 54.3%, while Toast shares have risen 0.6%. In comparison, the S&P 500 composite has advanced 4.2% in the same time frame.
Image Source: Zacks Investment Research
TOST is trading at a forward price-to-sales of 1.86X, which is below its one-year median of 2.65X.
Meanwhile, following the share rally, DAVE is presently trading at a forward price-to-sales of 6.82X, which is above its one-year median of 4.53X. Dave’s premium requires rapid growth and clean credit execution.
Image Source: Zacks Investment Research
ConclusionToast remains a fintech platform with strong restaurant reach, rising profitability and credible growth paths in AI, enterprise and international markets. Its broad ecosystem lowers dependence on any single product, but the company’s size and expansion spending may limit near-term upside. Dave carries greater credit, regulatory and bank-partner risk, yet its growth, acquisition efficiency, improving past-due rates and widening product lineup provide a more powerful earnings path.
For investors choosing between the two, Dave looks like the more attractive position to add now, while Toast appears better suited for existing shareholders who are comfortable waiting for newer initiatives to mature.
While TOST carries a Zacks Rank #3 (Hold), DAVE sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Toast launched an AI marketing agent to help restaurants create campaigns and attract more guests.Pilot users of Toast IQ Grow saw average sales rise 8% versus similar Toast restaurants.Toast's AI push lifted coding velocity 60% and resolved 40% of customer-support interactions. Toast, Inc. (TOST - Free Report) is making artificial intelligence (AI) a central part of its growth strategy. In May 2026, the company launched Toast IQ Grow, a marketing product built around its first AI agent. It creates campaigns using restaurant sales data across email, text messages and social channels, helping busy operators save time and attract guests.
Early results appear encouraging. Pilot customers using Toast IQ Grow recorded an average 8% increase in sales compared with similar Toast restaurants. Sahara Bistro Shawarma attributed nearly one-third of its March 2026 sales to Toast marketing tools. Its sales also rose more than 30% from the prior four weeks, suggesting that AI agents can produce measurable returns.
Toast also has a large base for expanding AI services. It ended the first quarter of 2026 with about 171,000 locations, up 22% year over year, after adding roughly 7,000 net locations. Toast IQ already had 40,000 weekly active locations, giving the platform more operating, payment and guest data to generate useful recommendations.
The AI push is also supporting Toast’s internal efficiency. Engineering coding velocity increased more than 60% year over year, helping the company launch its marketing agent three months earlier than planned. About 40% of customer-support interactions were resolved by AI, improving efficiency and enabling Toast to invest more in account management, product development and sales.
Investors need to watch whether AI usage is converting into stronger financial growth. First-quarter 2026 annualized recurring run-rate (ARR) rose 26% to $2.2 billion, while recurring gross profit grew 27%. Adjusted EBITDA reached $179 million, and operating income climbed to $110 million from $43 million.
How Are XYZ & LSPD Integrating AI?Block’s (XYZ - Free Report) Square has embedded AI into its merchant services through automated marketing, customer insights and operational recommendations. These tools help restaurants personalize promotions, simplify decisions and improve efficiency within the broader Square ecosystem. XYZ reported serving more than 4 million sellers across its global digital commerce platforms.
Lightspeed (LSPD - Free Report) applies AI to restaurant analytics, inventory planning and customer engagement. Its AI-driven features help operators interpret sales patterns, forecast demand and identify practical actions that may improve margins. LSPD ended the fourth quarter of fiscal 2026 with approximately 150,000 total customer locations using its commerce platform worldwide.
TOST’s Price Performance, Valuation & EstimatesShares of Toast have outperformed in the past three months compared with the broader industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Toast’s shares have a Value Score of C. In terms of forward 12-month P/E, TOST stock is trading at 26.20X, which is at a discount to the Zacks Internet Software industry’s 27.43X.
Image Source: Zacks Investment Research
Toast’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 earnings per share has been revised upward to $1.35 in the past two months. The consensus estimate for the metric indicates a year-over-year increase of 51.69%.
Image Source: Zacks Investment Research
Toast currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D.A. Davidson & CO. grew its holdings in Toast, Inc. (NYSE:TOST – Free Report) by 52.7% in the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 72,079 shares of the company’s stock after buying an additional 24,868 shares during the quarter. D.A. Davidson & CO.’s holdings in Toast were worth $1,911,000 at the end of the most recent quarter.
Other institutional investors have also recently made changes to their positions in the company. Bayban bought a new position in shares of Toast during the fourth quarter valued at approximately $25,000. SHP Wealth Management purchased a new position in shares of Toast in the fourth quarter worth approximately $29,000. Strive Financial Group LLC purchased a new position in shares of Toast during the 4th quarter worth $29,000. Central Pacific Bank Trust Division grew its stake in shares of Toast by 123.5% during the 4th quarter. Central Pacific Bank Trust Division now owns 943 shares of the company’s stock valued at $33,000 after acquiring an additional 521 shares during the period. Finally, Silicon Valley Capital Partners purchased a new stake in shares of Toast in the fourth quarter worth $36,000. Institutional investors own 82.91% of the company’s stock.
Wall Street Analysts Forecast Growth A number of equities analysts recently weighed in on the stock. Morgan Stanley set a $45.00 target price on shares of Toast in a research report on Friday, May 8th. UBS Group decreased their price objective on Toast from $40.00 to $34.00 and set a “buy” rating on the stock in a research report on Friday, May 8th. Barclays began coverage on shares of Toast in a research note on Tuesday, July 7th. They issued an “overweight” rating and a $35.00 target price on the stock. Citigroup cut their price objective on Toast from $42.00 to $36.00 and set a “buy” rating on the stock in a research report on Friday, May 8th. Finally, Robert W. Baird lifted their price target on shares of Toast from $30.00 to $33.00 and gave the company a “neutral” rating in a research note on Wednesday, July 8th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $36.96.
View Our Latest Report on TOST
Toast Trading Down 1.5% NYSE:TOST opened at $30.40 on Wednesday. The firm has a fifty day simple moving average of $26.19 and a 200-day simple moving average of $28.12. Toast, Inc. has a 12 month low of $22.26 and a 12 month high of $49.66. The company has a market capitalization of $15.69 billion, a P/E ratio of 46.77 and a beta of 1.74.
Toast (NYSE:TOST – Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.08). Toast had a net margin of 6.39% and a return on equity of 20.86%. The firm had revenue of $1.63 billion for the quarter, compared to analysts’ expectations of $1.63 billion. During the same quarter in the previous year, the firm posted $0.09 EPS. The firm’s revenue for the quarter was up 21.9% compared to the same quarter last year. Equities analysts forecast that Toast, Inc. will post 0.97 EPS for the current year.
Insider Buying and Selling In related news, CEO Aman Narang sold 14,365 shares of Toast stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $28.85, for a total transaction of $414,430.25. Following the completion of the transaction, the chief executive officer directly owned 70,451 shares in the company, valued at approximately $2,032,511.35. This trade represents a 16.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Jonathan Vassil sold 3,150 shares of the business’s stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $30.03, for a total transaction of $94,594.50. Following the completion of the transaction, the executive owned 69,966 shares of the company’s stock, valued at approximately $2,101,078.98. This represents a 4.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 159,265 shares of company stock valued at $4,278,832 in the last 90 days. 10.03% of the stock is currently owned by insiders.
Toast Company Profile (Free Report)
Toast, Inc (NYSE: TOST) is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.
Toast’s product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.
See Also Five stocks we like better than Toast Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding TOST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Toast, Inc. (NYSE:TOST – Free Report).
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In the latest trading session, Toast (TOST - Free Report) closed at $30.37, marking a -1.56% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.89%. On the other hand, the Dow registered a gain of 0.74%, and the technology-centric Nasdaq increased by 1.29%.
Shares of the restaurant software provider witnessed a gain of 27.16% over the previous month, beating the performance of the Computer and Technology sector with its loss of 6.6%, and the S&P 500's loss of 0.63%.
Analysts and investors alike will be keeping a close eye on the performance of Toast in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.32, signifying a 33.33% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing a 20.82% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.35 per share and a revenue of $7.38 billion, demonstrating changes of +51.69% and +19.95%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Toast. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Toast is currently a Zacks Rank #3 (Hold).
Digging into valuation, Toast currently has a Forward P/E ratio of 22.81. Its industry sports an average Forward P/E of 19.97, 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 industry currently has a Zacks Industry Rank of 85, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
BOSTON--(BUSINESS WIRE)--Toast (NYSE: TOST), the global technology platform built for restaurant and retail businesses, will release financial results for the second quarter ended June 30, 2026 following the close of the U.S. markets on Tuesday, August 4, 2026. Toast will host a conference call to discuss its results at 5:00 p.m. Eastern Time the same day. The news release with financial results and a link to the conference call will be accessible at the Toast investor relations website: https:.
Amova Asset Management Americas Inc. raised its holdings in shares of Toast, Inc. (NYSE:TOST – Free Report) by 0.4% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 3,817,961 shares of the company’s stock after buying an additional 16,614 shares during the quarter. Toast comprises about 1.4% of Amova Asset Management Americas Inc.’s portfolio, making the stock its 21st biggest holding. Amova Asset Management Americas Inc. owned approximately 0.74% of Toast worth $101,176,000 at the end of the most recent quarter.
A number of other hedge funds have also modified their holdings of the business. NewEdge Advisors LLC lifted its position in Toast by 1,555.5% during the first quarter. NewEdge Advisors LLC now owns 17,432 shares of the company’s stock worth $578,000 after buying an additional 16,379 shares in the last quarter. Cerity Partners LLC grew its holdings in shares of Toast by 24.0% in the second quarter. Cerity Partners LLC now owns 81,574 shares of the company’s stock valued at $3,613,000 after purchasing an additional 15,774 shares during the period. State Street Corp grew its holdings in shares of Toast by 2.7% in the second quarter. State Street Corp now owns 9,212,889 shares of the company’s stock valued at $408,039,000 after purchasing an additional 245,276 shares during the period. Frontier Capital Management Co. LLC purchased a new position in Toast during the second quarter worth about $4,479,000. Finally, Sei Investments Co. raised its stake in Toast by 24.6% during the second quarter. Sei Investments Co. now owns 1,030,007 shares of the company’s stock worth $45,619,000 after purchasing an additional 203,404 shares during the period. 82.91% of the stock is currently owned by institutional investors and hedge funds.
Analysts Set New Price Targets Several research firms have recently weighed in on TOST. Morgan Stanley set a $45.00 price target on shares of Toast in a research note on Friday, May 8th. Citigroup decreased their price objective on Toast from $42.00 to $36.00 and set a “buy” rating on the stock in a report on Friday, May 8th. DA Davidson cut their target price on Toast from $33.00 to $28.00 and set a “neutral” rating for the company in a research note on Tuesday, May 12th. The Goldman Sachs Group raised Toast from a “neutral” rating to a “buy” rating and set a $36.00 price objective for the company in a research report on Thursday, July 9th. Finally, Mizuho cut their target price on Toast from $45.00 to $38.00 and set an “outperform” rating on the stock in a research report on Tuesday, May 12th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, Toast presently has an average rating of “Moderate Buy” and a consensus target price of $36.96.
View Our Latest Stock Report on TOST
Toast Trading Up 2.7% Toast stock opened at $30.89 on Tuesday. The stock has a market cap of $15.94 billion, a P/E ratio of 47.52 and a beta of 1.74. The company has a fifty day simple moving average of $26.05 and a 200-day simple moving average of $28.16. Toast, Inc. has a 12-month low of $22.26 and a 12-month high of $49.66.
Toast (NYSE:TOST – Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.08). Toast had a net margin of 6.39% and a return on equity of 20.86%. The business had revenue of $1.63 billion during the quarter, compared to analysts’ expectations of $1.63 billion. During the same period last year, the company earned $0.09 EPS. The business’s quarterly revenue was up 21.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Toast, Inc. will post 0.97 earnings per share for the current fiscal year.
Insider Buying and Selling In related news, General Counsel Brian R. Elworthy sold 108,000 shares of Toast stock in a transaction on Friday, May 29th. The shares were sold at an average price of $25.89, for a total transaction of $2,796,120.00. Following the sale, the general counsel directly owned 189,642 shares in the company, valued at $4,909,831.38. This trade represents a 36.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Stephen Fredette sold 9,146 shares of the business’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $28.85, for a total transaction of $263,862.10. Following the completion of the sale, the president directly owned 931,449 shares of the company’s stock, valued at approximately $26,872,303.65. This trade represents a 0.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 159,265 shares of company stock valued at $4,278,832 over the last three months. 10.03% of the stock is currently owned by insiders.
Toast Company Profile (Free Report)
Toast, Inc (NYSE: TOST) is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.
Toast’s product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.
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Jonathan Vassil, Chief Revenue Officer of Toast, Inc. (TOST 0.81%), sold 11,170 shares of Class A Common Stock on July 13 and July 14, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold11,170Transaction value~$336,900Post-transaction shares154,235Post-transaction shares (directly held)69,966Post-transaction shares (indirectly held)84,269Post-transaction value$4.6 millionTransaction value based on SEC Form 4 weighted average sale price ($30.16); post-transaction value based on July 14, 2026, market close ($30.00).
Key questionsHow does this transaction relate to the executive's total equity exposure?
While the sale involved 11,170 shares, Jonathan Vassil maintains a substantial long-term incentive position with 316,431 outstanding stock options, ensuring continued alignment with the company's valuation performance.What were the mechanics of the share acquisition and disposal?
The transaction was executed as a cashless exercise and sale, in which options with an exercise price of $2.21 were converted to Class A Common Stock and immediately sold at prices ranging from $30.00 to $30.52.What is the significance of the 10b5-1 plan adoption date?
The trading plan was established on March 13, 2026, with a four-month cooling-off period before the first transactions were executed in July, a standard governance practice for executive portfolio management.How does the current market valuation compare to the transaction price?
The shares were sold at a weighted-average price of $30.16, slightly above the July 14, 2026, market close of $30.00, during a period when the stock had declined 33% over the previous 12 months.Company OverviewMetricValueShare Price (as of market close 2026-07-17)$30.08Market Capitalization$17.4 billionRevenue (TTM)$6.4 billionNet Income (TTM)$412.0 millionCompany SnapshotToast, Inc. delivers a comprehensive cloud-based digital technology platform purpose-built for the restaurant industry, featuring a robust product suite that includes the Toast Point of Sale (POS) system, Toast Flex terminals, and complementary hardware solutions that generate recurring software and services revenue.The company operates a subscription-based business model in which restaurant operators pay recurring fees for access to its integrated cloud platform, point-of-sale hardware, payment processing services, and ancillary software solutions, thereby creating predictable, scalable revenue streams.Toast serves restaurant operators of varying sizes across the United States and Ireland, targeting independent and multi-unit restaurant chains seeking comprehensive digital infrastructure solutions to streamline operations, enhance customer engagement, and optimize financial management.Toast, Inc. is a leading provider of cloud-based digital infrastructure solutions for the restaurant industry, with a market capitalization of $17.4 billion, TTM revenues of $6.4 billion, and TTM net income of $412.0 million. The company maintains operational scale with 6,500 employees. It leverages its integrated platform architecture, combining point-of-sale hardware, payment processing, and software services, to create significant switching costs and customer stickiness in a fragmented yet growing market. Toast's competitive positioning is reinforced by its vertical specialization in the restaurant sector, enabling deep product-market fit and the ability to capture multiple revenue streams across hardware, software subscriptions, and payment processing services.
What this transaction means for investorsInvestors shouldn’t worry about Vassil’s recent sales as they are pretty run-of-the-mill, pre-planned transactions for management to make over time. Vassil still has ample exposure to Toast’s long-term results, and these sales were relatively minor.
The main focus for investors should be on Toast’s stock and its actual operations, which appear to be moving in contrasting directions. While Toast stock is down 35% over the last year, I’d argue that the company has never been stronger financially and operationally. The company has locked in its status as the leading payment provider in the states for restaurants of all types and has recently delivered exceptional growth despite a challenging macroeconomic environment and the ever-looming, all-encompassing “AI disruption threat.”
Toast just grew annual recurring revenue by 26%, adjusted EBITDA by 34%, and saw EPS double in its latest quarter as its payments platform continued to scale beautifully. Now solidly profitable and becoming ever more so with each quarter, Toast’s focus will turn to protecting its leadership position from peers, incorporating AI into its operations, and upselling current customers on new services. Trading at just 22 times forward earnings while guiding for recurring gross profits to grow by 22% this year, I’ll be looking to open a starter position in the company soon.
Key Takeaways Toast is expanding into enterprise, retail and international markets to broaden its growth opportunities.TOST won Hungry Howie's rollout, launched Drive-Thru and now serves 100-plus grocery locations.TOST posted 21.9% revenue growth, 26% ARR growth and added 7,000 net new locations in Q1. Toast (TOST - Free Report) is expanding beyond independent U.S. restaurants into enterprise chains, retail and international markets. Management said these newer markets are gaining traction, with annualized recurring run-rate (ARR) growing faster and software revenue per location exceeding that of Toast’s core business at a comparable stage.
Enterprise offers clear proof of Toast’s expansion strategy. Hungry Howie’s selected Toast’s enterprise technology suite for implementation across roughly 500 restaurants, including its point-of-sale (POS) terminals, Multi-Location Management, Kitchen Display System (KDS) and Toast Payment Processing. Toast also launched Toast Drive-Thru, an enterprise-grade solution designed to serve more than 140,000 U.S. locations.
Retail is another important growth path. Toast now serves more than 100 grocery locations, each generating more than $5 million in annual sales. Management estimates that more than 20,000 independent U.S. grocers generate more than $250 billion in sales, creating a sizable opportunity for Toast’s payments, inventory and supplier tools.
Internationally, Toast is focusing on dense, high-volume cities such as London, Toronto, Sydney and Melbourne. Its support for an International Chamber of Commerce UK Trade & Export initiative could raise its profile with hospitality groups expanding between the UK and the United States. Toast is backing that expansion with local teams, round-the-clock service and operating data that can be shared globally.
Toast entered 2026 with strong momentum, giving its broader expansion plan added weight. First-quarter revenues increased 21.9% to $1.63 billion, while ARR climbed 26% to $2.2 billion. It added 7,000 net new locations in the quarter, with total locations increasing 22% year over year to nearly 171,000.
How Are Block & Lightspeed Expanding?Block’s (XYZ - Free Report) Square is a strong direct competitor. Square combines restaurant POS, payments, handheld hardware, online ordering, inventory and franchise-management tools, while its Uber Eats integration is expanding internationally. Square said that food-and-beverage seller GPV grew 21% year over year in first-quarter 2026.
Lightspeed POS (LSPD - Free Report) competes across hospitality and retail. Its platform combines POS, global payments, inventory management, supplier connections, analytics and multichannel sales, helping multi-location merchants operate efficiently across physical and digital channels. Lightspeed serves businesses in more than 100 countries worldwide.
TOST’s Price Performance, Valuation & EstimatesShares of Toast have outperformed in the past three months compared with the broader industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Toast’s shares has a Value Score of C. In terms of forward 12-month P/E, TOST stock is trading at 26.34X, which is at a discount to the Zacks Internet Software industry’s 28.50X.
Image Source: Zacks Investment Research
Toast’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $1.35 in the past two months. The consensus estimate for the metric indicates a year-over-year increase of 51.69%.
Image Source: Zacks Investment Research
Toast currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Toast Inc. NYSE: TOST shares have rallied sharply into mid-July. Analysts are becoming bullish on the company’s Toast IQ artificial intelligence (AI) platform that launched in October 2025.
Toast Today
$30.56 +0.16 (+0.54%)
As of 01:41 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$22.26▼
$49.66P/E Ratio47.03
Price Target$37.59
The tool is boosting total revenue and annual recurring revenue (ARR). Toast’s first-quarter results showed approximately 7,000 net new locations and 26% year-over-year ARR growth to $2.2 billion.
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That was punctuated by The Goldman Sachs Group, which upgraded the stock from Neutral to Buy and raised its price target to $36. The firm was bullish about Toast IQ, which it believes will increase the company’s average revenue per user. Toast has also been increasing its number of accounts, a trend Goldman Sachs believes will continue.
Since the rally, TOST is about 20% below its consensus price target of $37.59. But at a time when investors have higher growth options, the simple question is whether TOST is fairly priced or undervalued.
Toast AI Platform Is Driving Revenue and ARR GrowthOn June 10, Toast published data about how its customers used Toast IQ in the first quarter of 2026. The results make clear that restaurant owners are looking for insights to increase the profitability and efficiency of their restaurants. That supports the idea that revenue gains will continue.
However, the company is also facing the costs associated with AI. That means balancing higher hardware and memory costs that could put margins under pressure.
Why Interest Rates Still Matter for TOSTSince going public in 2021, TOST stock has been impacted by the direction of interest rates. It soared to around $51 a share after the IPO. However, this was a time when stimulus money flowed freely, and the revenge travel trade was just getting started.
Toast seemed like the right stock at the right time. That is, until it wasn’t. TOST fell sharply, along with most technology stocks, starting in November 2021.
That wasn’t just because of normal IPO price action. The Federal Reserve began raising interest rates from a level at or near zero percent. Before dismissing that as anecdotal evidence, consider that Toast relies on the restaurant sector. This sector came under pressure as they balanced higher input costs with a consumer who had only so much room to absorb price increases.
That situation is still in place today. Consumer spending remains strong, and the latest data show inflation moderating. That argues against interest rate hikes, which will be bullish for TOST.
Is Toast Stock Undervalued? DCF Models Tell Different StoriesA discounted cash flow (DCF) calculator offers two ways to answer the fair value question. At TOST's current price, both are worth checking because they tell noticeably different stories.
The Intrinsic Value (FCF) model discounts Toast's projected free cash flow to today's dollars, resulting in a fair value range of $35.68 to $65.40 per share. The high end of that range is about 54% above the price as of July 15, suggesting the stock is undervalued on a pure cash-generation basis.
The Intrinsic Value Range w/Earnings Per Share (EPS) model applies multiples of 18.75x to 25x to projected earnings, resulting in a fair value band of $4.59 to $8.37 per share. A 25x forward price-to-earnings (P/E) is below the stock's current P/E and is reasonably generous for a mature company. The gap comes from the earnings base, not the multiple.
Why the disconnect? Toast only recently crossed into sustained GAAP profitability, and its GAAP earnings per share remain small relative to the cash the business actually generates. Stock-based compensation and other non-cash charges weigh on reported EPS in a way that they don't weigh on free cash flow. Analysts project 33% earnings growth over the next 12 months. A static, current-year EPS multiple doesn't fully capture that growth.
That's the real takeaway: the FCF and EPS models aren't contradicting each other so much as measuring different things for a company early in its profitability curve. As GAAP earnings catch up to cash flow, expect that gap to narrow. Until then, the FCF model may be the more reliable gauge of what Toast is actually worth.
Toast, Inc. (TOST) Price Chart for Thursday, July, 16, 2026
Toast Stock Outlook: What to Watch Before August EarningsTOST is a stock that may be easier to buy than it is to hold. For investors who believe the stock is trading below its fair value, getting in at $30 seems like a safe bet. However, competition and higher costs could eat into the company’s margins, compressing earnings growth, which is the argument skeptics are making.
Toast is scheduled to report earnings on August 4. Confirmation of strong year-over-year revenue growth could go a long way toward affirming Goldman Sachs' outlook. It could also signal that more analysts will raise their TOST targets.
Should You Invest $1,000 in Toast Right Now?Before you consider Toast, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Toast wasn't on the list.
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Toast (TOST - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this restaurant software provider have returned +24.5%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Internet - Software industry, which Toast falls in, has gained 8.6%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Toast is expected to post earnings of $0.32 per share, indicating a change of +33.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.35 points to a change of +51.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $1.72 indicates a change of +27% from what Toast is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toast.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Toast, the consensus sales estimate for the current quarter of $1.87 billion indicates a year-over-year change of +20.8%. For the current and next fiscal years, $7.38 billion and $8.7 billion estimates indicate +19.9% and +17.8% changes, respectively.
Last Reported Results and Surprise HistoryToast reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $0.29 for the same period compares with $0.2 a year ago.
Compared to the Zacks Consensus Estimate of $1.63 billion, the reported revenues represent a surprise of +0.1%. The EPS surprise was +3.57%.
Over the last four quarters, Toast surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Toast is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Toast. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest close session, Toast (TOST - Free Report) was up +1.3% at $30.39. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.62%.
The stock of restaurant software provider has risen by 19.67% in the past month, leading the Computer and Technology sector's loss of 0.53% and the S&P 500's gain of 1.61%.
Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. On that day, Toast is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 33.33%. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing a 20.82% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.35 per share and a revenue of $7.38 billion, demonstrating changes of +51.69% and +19.95%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Toast. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Toast currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Toast has a Forward P/E ratio of 22.18 right now. This indicates a premium in contrast to its industry's Forward P/E of 19.89.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
DELTA, British Columbia, July 14, 2026 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) today introduced Super Toast Bites, a new line of cannabis-infused gummies that brings the brand’s signature flavours and big-bite attitude into a chewable format. The line arrives in two new product formats: Diamond Bites and Rosin Bites.
Super Toast Bites marks the brand’s first entry into the gummies category. Edibles remain a small but fast-growing part of the overall Canadian market, accounting for roughly 5 per cent of industry sales and up 19 per cent in the first half of 2026.1 With Bites, Super Toast is meeting consumers at different stage of their cannabis journeys, offering the same brand across formats as their preferences evolve.
Diamond Bites
Diamond Bites are toast-shaped, sugar-coated gummies infused with liquid diamonds, delivering a clean, consistent, potent experience. Launching in two of Super Toast’s iconic flavours, Sgt. Pineapple and Strawnana. Each pack features 10 x 10mg THC gummies, individually wrapped to lock in freshness.
Rosin Bites
Rosin Bites are jumbo, sprinkle-coated gumdrops featuring solventless live hash rosin for a more true-to-flower experience. These satisfying layered textured edibles debut in an ultra-tasty Blue Razz flavour. Like Diamond Bites, each pack of Rosin Bites includes 10 x 10mg THC gummies, individually wrapped for freshness.
Paul Furfaro, President of Global Commercial for Village Farms, commented, "Super Toast is built for the on-the-go consumer, and Bites are designed to deliver the next chapter of the brand’s growing lineup of convenience products. Today’s consumers are shopping across categories: they want ground flower or joints one day, a vape or infused pre-roll the next, and edibles whenever the mood hits. We’re excited to welcome Bites into the Super Toast portfolio as a top growing brand in Canada."
Super Toast Bites are now available through licensed cannabis retailers in Ontario, and additional markets in the weeks to follow. For more information about Super Toast Bites, visit supertoast.world
About Village Farms International, Inc.
Village Farms is a global leader in cannabis, plant-based consumer packaged goods, and sustainable innovation. With a legacy built on decades of Controlled Environment Agriculture expertise and Dutch farming practices, today the Company is one of the world’s largest and most profitable cannabis operators with an asset portfolio that spans over 7 million square feet of advanced greenhouse and indoor cultivation assets.
In Canada, Village Farms operates one of the largest EU-GMP certified cannabis facilities in the world from its production campus in Delta, British Columbia, and exports products to international medical markets. The Company is also a market share leader in dried flower formats and produces and distributes some of the country’s highest quality and best-selling strains, including its flagship Pure Sunfarms Pink Kush, one of the most widely consumed strains on the planet. Village Farms’ Canadian brand portfolio includes Pure Sunfarms, Fraser Valley Weed Co., Soar, Super Toast, Pure Laine, Tam Tams and Promenade.
In the Netherlands, the Company is one of only ten licensed operators in the country’s regulated cannabis program, and in the United States its CBDistillery brand is one of the country’s largest independent hemp-derived wellness platforms. Beyond cannabis, the Company’s Clean Energy division transforms landfill gas into renewable natural gas, and it also holds an equity interest in Vanguard Food LP, a private venture pursuing strategic acquisitions to build a premier branded food platform in North America.
1 Ontario Cannabis Store (OCS), 2026 retail data (as of June 2026).
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/eab8e7d5-2afa-4583-8c10-568e543824fd
Village Farms Unveils Super Toast Bites, a New Line of Cannabis-Infused Gummies Diamond Bites and Rosin Bites mark Super Toast’s entry into Canada’s edibles category.
Toast (TOST - Free Report) closed the most recent trading day at $28.57, moving -3.51% from the previous trading session. This change lagged the S&P 500's 0.28% loss on the day. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
The stock of restaurant software provider has risen by 18.44% in the past month, leading the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
The upcoming earnings release of Toast will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.32, reflecting a 33.33% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.87 billion, indicating a 20.82% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.35 per share and a revenue of $7.38 billion, signifying shifts of +51.69% and +19.95%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Toast. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.84% higher. Toast is currently a Zacks Rank #3 (Hold).
In terms of valuation, Toast is currently trading at a Forward P/E ratio of 21.89. This indicates a premium in contrast to its industry's Forward P/E of 19.93.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Toast (TOST - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Toast currently has an average brokerage recommendation (ABR) of 1.63, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.63 approximates between Strong Buy and Buy.
Of the 30 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 66.7% and 3.3% of all recommendations.
Brokerage Recommendation Trends for TOST
Check price target & stock forecast for Toast here>>>
While the ABR calls for buying Toast, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in TOST?Looking at the earnings estimate revisions for Toast, the Zacks Consensus Estimate for the current year has increased 1.8% over the past month to $1.35.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Toast. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Toast may serve as a useful guide for investors.
Toast (TOST - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this restaurant software provider have returned +14.5%, compared to the Zacks S&P 500 composite's -1.4% change. During this period, the Zacks Internet - Software industry, which Toast falls in, has lost 3.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Toast is expected to post earnings of $0.32 per share, indicating a change of +33.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.9% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.35 points to a change of +51.7% from the prior year. Over the last 30 days, this estimate has changed +1.8%.
For the next fiscal year, the consensus earnings estimate of $1.72 indicates a change of +27% from what Toast is expected to report a year ago. Over the past month, the estimate has changed -1.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Toast.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Toast, the consensus sales estimate for the current quarter of $1.87 billion indicates a year-over-year change of +20.8%. For the current and next fiscal years, $7.38 billion and $8.7 billion estimates indicate +19.9% and +17.8% changes, respectively.
Last Reported Results and Surprise HistoryToast reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $0.29 for the same period compares with $0.2 a year ago.
Compared to the Zacks Consensus Estimate of $1.63 billion, the reported revenues represent a surprise of +0.1%. The EPS surprise was +3.57%.
Over the last four quarters, Toast surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Toast is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Toast. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Toast (TOST - Free Report) ended the recent trading session at $27.82, demonstrating a -1.21% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.79%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 1.52%.
Shares of the restaurant software provider witnessed a gain of 1.51% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.61%, and the S&P 500's loss of 1.82%.
Market participants will be closely following the financial results of Toast in its upcoming release. The company's earnings per share (EPS) are projected to be $0.32, reflecting a 33.33% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.87 billion, up 20.82% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.35 per share and revenue of $7.38 billion, which would represent changes of +51.69% and +19.95%, respectively, from the prior year.
Any recent changes to analyst estimates for Toast should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.84% rise in the Zacks Consensus EPS estimate. Toast is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Toast is currently trading at a Forward P/E ratio of 20.82. This expresses a premium compared to the average Forward P/E of 18.89 of its industry.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.
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.
Toast (TOST) is rated Buy with a 12-month price target of $32, reflecting underestimated growth and profitability. Recurring gross profit rose 27% and monetization take rate exceeded 1%, signaling compounding value beyond payment volume growth. TOST's structural profitability inflection is evidenced by $126M GAAP net income, 22% revenue growth, and robust free cash flow.
Discover how Toast (TOST +5.43%) uses a modular point-of-sale ecosystem to deepen relationships with restaurants, drive recurring revenue, and withstand industry headwinds. Watch the video below to see why its multi-product strategy could matter for long-term investors.
*This video was published on Jun. 26, 2026.
Alicia Alfiere, MBA has positions in Toast. Danny Vena, CPA has positions in Toast. Karl Thiel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool has a disclosure policy.
SummaryToast has declined 32% since my last bullish thesis.I acknowledge the bull case has not played out as expected in recent months.Recent performance challenges the prior investment thesis and warrants reassessment.Investors should closely monitor TOST for signs of stabilization or further downside. Noe Gonzalez/iStock via Getty Images
Sure enough, I was wrong so far with my bull case on Toast (TOST). But I don't think it's over. While the stock has collapsed by 32% since my previous coverage. Quite frankly, solid fundamentals haven't changed. It's still a
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TOST over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
After reaching an important support level, Toast (TOST - Free Report) could be a good stock pick from a technical perspective. TOST surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
Shares of TOST have been moving higher over the past four weeks, up 6.2%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that TOST could be poised for a continued surge.
The bullish case only gets stronger once investors take into account TOST's positive earnings estimate revisions. There have been 3 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TOST for more gains in the near future.
Toast (TOST - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, TOST crossed above the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Shares of TOST have been moving higher over the past four weeks, up 6.2%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that TOST could be poised for a continued surge.
The bullish case solidifies once investors consider TOST's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.
Investors should think about putting TOST on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
Toast (TOST - Free Report) ended the recent trading session at $24.51, demonstrating a +1.03% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.
Heading into today, shares of the restaurant software provider had gained 4.75% over the past month, outpacing the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. The company is expected to report EPS of $0.32, up 33.33% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing a 20.82% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.35 per share and revenue of $7.38 billion. These totals would mark changes of +51.69% and +19.95%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Toast. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.84% rise in the Zacks Consensus EPS estimate. Toast presently features a Zacks Rank of #1 (Strong Buy).
Investors should also note Toast's current valuation metrics, including its Forward P/E ratio of 17.94. This represents a discount compared to its industry average Forward P/E of 18.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Toast stock is among today’s top performers. Why are TOST shares rallying? TOST Stock To Join S&P MidCap 400 IndexS&P Dow Jones Indices late Tuesday announced that the restaurant technology platform will be added to the prestigious S&P MidCap 400 index. This index adjustment is scheduled to officially take effect prior to the opening of trading on Wednesday, July 1.
Toast is set to replace TopBuild Corp in the benchmark index. TopBuild is being removed from the mid-cap index because QXO Inc is acquiring the company in a transaction expected to close soon, pending final closing conditions. According to the index transition details, Toast will enter the benchmark classified under the Financials GICS sector.
Inclusion in major S&P benchmarks typically sparks significant buying momentum as index-tracking investment funds and ETFs are forced to adjust their portfolios to mirror the changes. Traders are responding enthusiastically to the milestone today, driving TOST stock higher as the company cements its footprint in the mid-capitalization space.
Critical Price Levels To Watch for TOSTToast is trading about 1.5% above its 20-day SMA ($24.93), but it remains 2.6% below its 50-day SMA ($25.98) and 19.9% below its 200-day SMA ($31.59), keeping the longer-term trend pressure intact. The 20-day SMA is still below the 50-day SMA (bearish), and the death cross that formed in October 2025 (50-day below the 200-day) reinforces that rallies may face supply until the stock can build a higher base.
RSI is the cleaner momentum read right now: at 47.81, it’s in neutral territory, suggesting the stock isn’t stretched and is still deciding between range-building and another leg lower. For non-technicians, RSI helps gauge whether buying or selling has become "overdone," and a mid-range reading like this often lines up with choppy, level-to-level trading.
Key Resistance: $28.00 — a round-number area that also sits closer to the stock’s declining intermediate trend zone, where rebounds can stall Key Support: $24.00 — a nearby round-number floor that’s close to the current consolidation area above the 20-day averages What Does Toast Do?Toast is a cloud-based, all-in-one digital technology platform built for restaurants, combining SaaS tools with financial technology solutions like integrated payment processing. It also sells restaurant-grade hardware and supports a broad ecosystem of third-party partners, aiming to function as an operating system for day-to-day restaurant workflows.
That "front of house to back of house" footprint matters because it ties Toast’s growth to restaurant transaction volume and software adoption, not just one product line. The company reports as a single segment spanning SaaS, fintech, payments, hardware, and partners, so investors often track whether the platform is expanding within existing customers while adding new locations.
Toast (TOST) Benzinga Edge Scorecard BreakdownBelow is the Benzinga Edge scorecard for Toast, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Toast’s Benzinga Edge signal reveals a growth-heavy profile with weak momentum, meaning the fundamental-style growth backdrop isn’t yet translating into sustained trend strength on the chart. For longer-term bulls, the key is whether the stock can start reclaiming levels like the 50-day and then work toward the high-$20s without losing the $24.00 support zone.
Toast (TOST) Stock Price Movement TodayTOST Stock Price Activity: Toast shares were up 3.75% at $25.44 at the time of publication on Wednesday, according to Benzinga Pro data.
Image: Shutterstock
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Toast (TOST - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this restaurant software provider have returned +8% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Internet - Software industry, to which Toast belongs, has gained 2.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Toast is expected to post earnings of $0.32 per share for the current quarter, representing a year-over-year change of +33.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.9%.
The consensus earnings estimate of $1.35 for the current fiscal year indicates a year-over-year change of +51.7%. This estimate has changed +1.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.72 indicates a change of +27% from what Toast is expected to report a year ago. Over the past month, the estimate has changed -1.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Toast is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Toast, the consensus sales estimate for the current quarter of $1.87 billion indicates a year-over-year change of +20.8%. For the current and next fiscal years, $7.38 billion and $8.7 billion estimates indicate +19.9% and +17.8% changes, respectively.
Last Reported Results and Surprise HistoryToast reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $0.29 for the same period compares with $0.2 a year ago.
Compared to the Zacks Consensus Estimate of $1.63 billion, the reported revenues represent a surprise of +0.1%. The EPS surprise was +3.57%.
Over the last four quarters, Toast surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Toast is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Toast. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Toast (TOST - Free Report) closed at $24.41 in the latest trading session, marking a -2.63% move from the prior day. This change lagged the S&P 500's 1.22% loss on the day. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 1.35%.
The stock of restaurant software provider has risen by 7.97% in the past month, leading the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 1.56%.
Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.32, marking a 33.33% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.87 billion, reflecting a 20.82% rise from the equivalent quarter last year.
TOST's full-year Zacks Consensus Estimates are calling for earnings of $1.35 per share and revenue of $7.38 billion. These results would represent year-over-year changes of +51.69% and +19.95%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toast. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.84% upward. Currently, Toast is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Toast is holding a Forward P/E ratio of 18.54. This denotes a discount relative to the industry average Forward P/E of 18.64.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 36% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Toast (TOST - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Toast currently has an average brokerage recommendation (ABR) of 1.68, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 31 brokerage firms. An ABR of 1.68 approximates between Strong Buy and Buy.
Of the 31 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 64.5% and 3.2% of all recommendations.
Brokerage Recommendation Trends for TOST
Check price target & stock forecast for Toast here>>>
The ABR suggests buying Toast, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is TOST a Good Investment?In terms of earnings estimate revisions for Toast, the Zacks Consensus Estimate for the current year has increased 1.8% over the past month to $1.35.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Toast. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Toast may serve as a useful guide for investors.
Discover why Toast (TOST +0.53%) is building a powerful restaurant operating system that could thrive beyond today's macro pressures. Watch the video below to see what long-term investors may want to know before making a move.
*This video was published on Jun. 12, 2026.
Danny Vena, CPA has positions in Toast. Karl Thiel has no position in any of the stocks mentioned. Rick Munarriz has positions in Toast. The Motley Fool has positions in and recommends Toast. The Motley Fool has a disclosure policy.
Cathie Wood doesn't shy away from fire sales as the CEO of Ark Invest. On Friday, her family of aggressive growth ETFs added to existing stakes in CoreWeave (CRWV +8.61%), Cloudflare (NET 0.23%), and Toast (TOST +0.93%), which declined 14%, 24%, and 11%, respectively.
It was not a good day for those investors. Let's see why Wood is buying at a time when the overall market was going the other way.
Image source: Getty Images.
1. CoreWeave CoreWeave stock tumbled 11% on Friday, after following up mixed financial results with problematic top-line guidance. The hyperscaler is posting explosive growth as the AI revolution clamors for high-performance, low-latency GPU computing infrastructure solutions that CoreWeave excels at providing.
Revenue rose 112% to $2.078 billion through the first three months of this year. Analysts were holding out for a 101% top-line jump. That's a clear beat, but it was a different story on the other end of the income statement. The company posted a first-quarter loss of $1.40 a share, a lot more red ink than the $1.20 a share that Wall Street pros were targeting.
Today's Change
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CoreWeave has now fallen short on the bottom line three times over the past four quarters, but that shouldn't be a problem. This isn't a bottom-line story. CoreWeave is investing in growth, spending to make sure it meets the booming AI demand. No one expects it to be profitable in the next couple of years.
But it doesn't have to be. The orders keep stacking up despite the substantial long-term debt on its balance sheet. CoreWeave secured another $40 billion in order commitments during the quarter, bringing its backlog to a whopping $100 billion at the end of March.
This does bring us to the bigger problem than the bottom-line miss. Despite a near quadrupling of the order commitments backlog over the past year, CoreWeave is eyeing only $2.45 billion to $2.6 billion in revenue for the second quarter. This is a 108% increase over the past year at the midpoint, but analysts had been modeling a larger step up. Even the $12 billion to $13 billion in revenue it's forecasting for the entire year was just shy of where the Wall Street pros were perched at the midpoint.
It was far from a perfect report, but was Friday's selling overdone? CoreWeave has done nothing but deliver triple-digit revenue growth in every quarter since going public more than a year ago. It will keep doing that in the near term. The track record for growth investors is pretty good when a company is growing this quickly with a long backlog of orders to keep the pace going for the near future.
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2. Cloudflare Cloudflare stock came within spitting distance of hitting a new all-time intraday high on Thursday. The initial skepticism for cybersecurity stocks in the AI age was subsiding for Cloudlfare as it positions itself as a vital infrastructure necessity for AI agents, edge computing specialists, and the enterprise security market. The bullish momentum went away when Cloudflare offered up its latest financial update.
The numbers were pretty good. Revenue rose 34% to $640 million. Its adjusted earnings were $0.25 per share. Cloudflare topped expectations on both fronts. Its revenue guidance for the current quarter was a tad soft, but it did lift its revenue and adjusted earnings outlook for all of 2026. Unfortunately, the top-line raise of $18 million to $20 million for the full year is essentially the $20 million beat from its initial first-quarter forecast. In short, the outlook for the final nine months of the year remains largely unchanged despite the deluge of new orders.
Cloudflare also announced it will trim its workforce by 1,100 people in the next few months. That's the next step in its push to make the company an agentic AI-first operating model. The move would shave costs in the long run, but at a time when it can't fulfill its order backlog fast enough, is shedding overhead the smartest decision?
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3. Toast All three of the stocks on this list have a few things in common.
They each experienced double-digit percentage declines on Friday, a day when the broader market inched higher. Earnings season came calling, with all of them announcing results after Thursday's market close. They were already Ark Invest holdings, with Wood adding more to the positions. Toast wraps up the list, with a 15% dive after its earnings-season spotlight. Its cloud-based platform for restaurant operators continues to gain traction. Toast added 7,000 net new locations through the first three months of the year. The 171,000 outlets using Toast represent a 22% increase over the past year.
This matches the 22% increase in gross payment volume of $51.3 billion for the first quarter. Net income and operating profit more than doubled. The market still wasn't impressed. Near-term concerns about the restaurant industry and margin pressures resulted in a stock selloff despite the otherwise tasty report. Wood came for seconds, again.
BOSTON--(BUSINESS WIRE)--Pizza operations are among the most technically complex in hospitality—between managing pickup and delivery simultaneously and customizing orders at scale, all while keeping kitchens moving. That's why Toast (NYSE: TOST), the global technology platform built for restaurants and retail businesses, is proud to bring its enterprise technology suite to Hungry Howie's—the nation's original Flavored Crust® pizza—where it will be implemented across Hungry Howie's entire footpr.
Key Takeaways Square launched Square for Drive-Thru to streamline order capture, kitchen flow and customer handoffs.XYZ added Reporting API access, combo meal tools and enhanced fulfillment coordination features.Square for Restaurants supports open APIs, reporting, cash flow and customer engagement tools. Block’s (XYZ - Free Report) merchant-facing business, Square, has introduced Square for Drive-Thru to streamline workflow for quick-service restaurants (QSRs). A solution built in collaboration with The Howard Company and Nanonation integrates order capture, kitchen operations and customer handoffs across Square’s point of sale (POS) and kitchen display systems (KDS). By reducing operational bottlenecks, the platform helps improve order accuracy and speed of service.
Customers can view their orders in real time on confirmation screens, while KDS routes orders directly to the appropriate kitchen station with automated order labeling and sequencing. This helps restaurants deliver the correct orders to the right customers more efficiently.
Built on Square for Restaurants, Square for Drive-Thru collates reporting, cash flow tools, marketing and customer engagement solutions, while operators can use their preferred third-party tools with open APIs, providing a complete, flexible business system.
Square is expanding its restaurant and drive-thru capabilities with new tools aimed at improving efficiency, reporting and customer service for multi-location operators. The company opened its Reporting API to external developers, enabling easier access to analytics and business intelligence data. Additional features include customizable combo meals, advanced report-building tools, enhanced fulfillment coordination across dine-in and delivery channels, and flexible payment method tracking to simplify reconciliation.
Square said that these innovations help QSRs manage operational complexity, improve speed and accuracy at the drive-thru, and support scalable growth while enhancing the overall guest experience.
How Are Block’s Competitors Faring?PayPal Holdings, Inc. (PYPL - Free Report) supports restaurant and quick-service workflows, including payments at counters, kiosks, mobile ordering, and even drive-thru transactions through PayPal Restaurant POS and PayPal Fast Food POS. The platform enables restaurants to unify payment processing, order management and customer engagement across channels, helping improve transaction speed and operational efficiency.
Toast (TOST - Free Report) offers a comprehensive technology ecosystem designed specifically for restaurants and quick-service operators. Its integrated platform combines POS software, KDS, digital menu boards, mobile ordering tools and AI-powered voice-ordering capabilities to streamline restaurant workflows. Toast’s drive-thru solutions help QSRs improve order accuracy, reduce service times and manage peak-hour demand more efficiently.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have rallied 46.9% over the past three months, outperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.71X, which is at a discount to the Zacks Internet Software industry’s 26.73X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised northward 1.4% over the past month. It indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Toast (TOST - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Toast currently has an average brokerage recommendation (ABR) of 1.70, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.70 approximates between Strong Buy and Buy.
Of the 30 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 63.3% and 3.3% of all recommendations.
Brokerage Recommendation Trends for TOST
Check price target & stock forecast for Toast here>>>
While the ABR calls for buying Toast, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in TOST?Looking at the earnings estimate revisions for Toast, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.3.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toast. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Toast.
On a recent episode of The Compound and Friends, hosts Josh Brown and Michael Batnick sat down with former Janus analyst Matt Ancrum to discuss his study of 100-bagger stocks. He found that 100-bagger stocks came from all different sectors, but there were some industries that accounted for a lion’s share of the world’s 100-baggers.
The Sector Breakdown Ancrum studied companies that went public between 1980 and 2000. Technology and software stocks accounted for about a third of the 100-bagger list, leaving the majority to other sectors. The 1980 to 1984 IPO class alone produced Home Depot (NYSE:HD | HD Price Prediction), Apple (NASDAQ:AAPL), Nike (NYSE:NKE), UnitedHealth (NYSE:UNH), and Amgen (NASDAQ:AMGN). He found that 100-baggers emerged consistently across every decade studied.
Retail produced an outsized share. Home Depot, AutoZone (NYSE:AZO), and Tractor Supply (NASDAQ:TSCO) were all cited as retail 100-baggers. Home Depot has compounded at 195.42% over the past decade, AutoZone at 356.18%, and Tractor Supply at 103.61%, with AutoZone still buying back stock aggressively ($310.8M repurchased in fiscal Q2 2026).
The manufacturing sector saw similar results. Amphenol (NYSE:APH) and HEICO (NYSE:HEI) were named as manufacturing 100-baggers. Amphenol is up 980.51% over ten years, with Q1 FY2026 revenue of $7.62 billion (58.4% YoY growth). The serial acquirer, HEICO, has compounded by 789.23% over the same span.
The takeaway is that while 100-bagger stocks come from all different industries, there was an outsized portion in the technology, retail, and manufacturing sectors.
The Modern Application: AI vs. Mission Critical Software Host Josh Brown framed a topic on everyone’s mind today: “A lot of the stocks that you talk about are, as we speak, being thought of on Wall Street as literally marked for death by Anthropic and Gemini and ChatGPT.”
Ancrum’s filter splits software into low-consequence (marketing tools, basic site builders) and high-consequence (cybersecurity, tax, compliance). On Australian council software vendor TechnologyOne, he noted: “You as a CEO, you’re actually personally accountable. That’s high consequence.” Switching to save a few dollars per seat is typically seen as irrational because the buyer carries the risk.
Brown applied that lens to Toast (NYSE:TOST), where he is personally underwater 30%, 40%, and to ServiceTitan. His view on Toast’s stickiness: “Once you convince a guy that owns a diner to adopt this, he ain’t never taking it out.” The runway is real. Toast serves 150,000 restaurant locations in a 600,000-location addressable market, and CEO Aman Narang has stated confidence in scaling to “$5 billion and $10 billion in ARR over the next decade” from $2.05B today.
Ancrum closed with the dot-com analogy: of today’s top 20 e-commerce sites, “There’s only 5 new economy, 15 old economy” retailers like Walmart and Home Depot that ultimately dominated online. The incumbent often wins the disruption.
Toast (TOST - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this restaurant software provider have returned -20.7%, compared to the Zacks S&P 500 composite's +8.6% change. During this period, the Zacks Internet - Software industry, which Toast falls in, has gained 1.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Toast is expected to post earnings of $0.32 per share, indicating a change of +33.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.3 points to a change of +46.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $1.71 indicates a change of +31.2% from what Toast is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Toast is rated Zacks Rank #3 (Hold).
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Toast, the consensus sales estimate for the current quarter of $1.87 billion indicates a year-over-year change of +20.8%. For the current and next fiscal years, $7.38 billion and $8.68 billion estimates indicate +19.9% and +17.7% changes, respectively.
Last Reported Results and Surprise HistoryToast reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $0.29 for the same period compares with $0.2 a year ago.
Compared to the Zacks Consensus Estimate of $1.63 billion, the reported revenues represent a surprise of +0.1%. The EPS surprise was +3.57%.
Over the last four quarters, Toast surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Toast is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Toast. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
LONDON--(BUSINESS WIRE)--Toast Supports the International Chamber of Commerce UK Trade & Export Initiative for Hospitality Brands Expanding Internationally.
Toast (NYSE: TOST), the global technology platform built for restaurant and retail businesses, today announced its participation as a proud sponsor of the Inte
Toast remains a compelling buy amid market rotation, with misunderstood growth and oversold shares despite robust fundamentals. TOST trades at 14.5x EV/FY26 adjusted EBITDA, with EBITDA growing over 30% y/y and stock-based comp declining to under 2% of market cap. Q1 revenue grew 22% y/y to $1.63B, showing no deceleration despite industry headwinds; 7k new paid locations added, up 22% y/y.
Toast (TOST - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this restaurant software provider have returned -14.4% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Internet - Software industry, to which Toast belongs, has lost 1.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Toast is expected to post earnings of $0.32 per share, indicating a change of +33.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +8.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.34 points to a change of +50.6% from the prior year. Over the last 30 days, this estimate has changed +17.8%.
For the next fiscal year, the consensus earnings estimate of $1.74 indicates a change of +29.6% from what Toast is expected to report a year ago. Over the past month, the estimate has changed +4.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Toast is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Toast, the consensus sales estimate for the current quarter of $1.87 billion indicates a year-over-year change of +20.8%. For the current and next fiscal years, $7.38 billion and $8.68 billion estimates indicate +19.9% and +17.7% changes, respectively.
Last Reported Results and Surprise HistoryToast reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $0.29 for the same period compares with $0.2 a year ago.
Compared to the Zacks Consensus Estimate of $1.63 billion, the reported revenues represent a surprise of +0.1%. The EPS surprise was +3.57%.
Over the last four quarters, Toast surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Toast is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Toast. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Toast (TOST - Free Report) .
Toast currently has an average brokerage recommendation (ABR) of 1.70, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.70 approximates between Strong Buy and Buy.
Of the 30 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 63.3% and 3.3% of all recommendations.
Brokerage Recommendation Trends for TOST
Check price target & stock forecast for Toast here>>>
The ABR suggests buying Toast, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in TOST?In terms of earnings estimate revisions for Toast, the Zacks Consensus Estimate for the current year has increased 17.8% over the past month to $1.34.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Toast. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Toast may serve as a useful guide for investors.
Markets continue to rip higher, but not all stocks. There are still quite a few stocks that are actually in the red on the year, and many stocks that still look undervalued.
In today's video I will go through 4 stocks I believe the stock market is getting wrong and valuations look intriguing at current levels. One of those stocks is Toast (TOST +0.93%) which is a name that has been under pressure given the software sell-off that has taken place in 2026.
Watch this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.
*Stock prices used were end-of-day prices of April 27, 2026. The video was published on April 28, 2026.
Mark Roussin, CPA has positions in Boeing, Lockheed Martin, Toast, and Vistra. The Motley Fool has positions in and recommends Boeing and Toast. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.
Mark Roussin is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Key Takeaways Stocks like ALHC, TOST, TTMI and WK were screened for strong liquidity and asset efficiency.The screen narrowed 7,700 stocks to 11, with these four meeting strict efficiency and growth criteria.Each stock also boasts higher asset utilization than its industry average and solid growth attributes. Liquidity measures a company’s capability to meet short-term debt obligations. Investors seeking strong portfolio returns should benefit from adding stocks with sound liquidity, which encourages business growth. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns.
Investors may want to consider adding four top-ranked stocks — Alignment Healthcare, Inc. (ALHC - Free Report) , Toast Inc (TOST - Free Report) , TTM Technologies, Inc. (TTMI - Free Report) and Workiva, Inc (WK - Free Report) — to their portfolios to boost returns.
However, it is important to exercise caution. While high liquidity can indicate that a company is efficiently managing its short-term obligations, it may also suggest underutilization of resources. In some cases, companies with excess liquidity may not be deploying their assets effectively, which could limit growth potential.
Hence, one may consider a company’s efficiency level in addition to its liquidity while identifying prospective winners. A balanced assessment of both liquidity and efficiency can help identify truly promising investment opportunities.
Measures to Identify Liquid StocksCurrent Ratio: It measures current assets relative to current liabilities. The ratio gauges a company’s potential to meet short and long-term debt obligations. A current ratio — the working capital ratio — below 1 indicates that the company has more liabilities than assets. A high current ratio does not always suggest that the company is in good financial shape. It may also indicate that the firm failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.
Quick Ratio: Unlike the current ratio, the quick ratio — the “acid-test ratio” or “quick assets ratio” — indicates a company’s ability to pay short-term obligations. It considers inventory, excluding current assets, relative to current liabilities. A quick ratio of more than 1 is desirable, like the current ratio.
Cash Ratio: This is the most conservative ratio among the three, considering cash, cash equivalents and invested funds relative to current liabilities. It measures a company’s ability to meet existing debt obligations using the most liquid assets. Though a cash ratio of more than 1 may suggest sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is always desirable, but it may not always represent a company’s financial condition.
Screening ParametersTo pick the best of the lot, we have added asset utilization — a widely used measure of a company’s efficiency — as one of the screening criteria. Asset utilization is the ratio of total sales in the past 12 months to the last four-quarter average of total assets. Though this ratio varies across industries, companies with a ratio higher than that of their industry can be considered efficient.
We added our proprietary Growth Score to the screen to ensure these liquid and efficient stocks have solid growth potential.
Current Ratio, Quick Ratio, and Cash Ratio between 1 and 3: While liquidity ratios greater than 1 are desirable, significantly high ratios may indicate inefficiency.
Asset utilization is more significant than the industry average: A higher asset utilization than the industry average indicates a company’s efficiency.
Zacks Rank equal to #1 (Strong Buy): Only Strong Buy-rated stocks can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Score less than or equal to B: Back-tested results show that stocks with a Growth Score of A or B handily beat other stocks when combined with a Zacks Rank #1 or 2 (Buy).
These criteria have narrowed the universe of more than 7,700 stocks to only 11.
Here are four of the 11 stocks that qualified the screen:
Alignment Healthcare is a clinically focused platform designed to improve the healthcare experience for seniors registered under Medicare. Through its various Medicare Advantage plans, it caters to the various requirements and preferences of seniors.
The company recently reported first-quarter 2026 results, wherein revenues came in at $1.24 billion, up 33.3% year over year. Performance was driven by strength and execution across sales, clinical operations and member retention. At quarter-end, health plan membership was 284,800, up 30.9% from the prior year quarter.
Profitability numbers were also impressive, with adjusted EBITDA up 87.6% year over year to $37.9 million. Revenues for 2026 are now expected to be between $5.16 billion and $5.21 billion.
The Zacks Consensus Estimate for ALHC’s 2026 earnings stands at 20 cents per share, unchanged in the past 30 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 198.81%, on average.
Toast is one of the leading providers of software-as-a-service (SaaS) and hardware solutions focused on the restaurant market.
For the first quarter of 2026, TOST reported annual recurring revenues of $2.2 billion, up 26% year over year, while Gross Payment Volume was up 22% year over year to $51.3 billion.
While continuing to gain share in its core restaurant segment, the company is scaling into enterprise, international, and retail verticals. Toast is prioritizing AI-led productivity and efficiency gains. The company is using AI to improve customer support, where around 40% of interactions are now handled by AI.
For the full year, Toast raised its guidance, projecting 21%-23% growth in recurring gross profit. Adjusted EBITDA in the range of $790–$810 million.
The Zacks Consensus Estimate for TOST’s 2026 earnings is pegged at $1.34 per share, unchanged in the past 30 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 0.9%, on average.
TTM Technologies manufactures tech products, including radio frequency (“RF”) components, mission systems, RF microwave/microelectronic assemblies, and next-generation interconnect products, including substrates and PCBs.
TTM delivered a strong first quarter, with revenues reaching $846 million, representing 30% year-over-year growth. Adjusted EBITDA margin expanded to 15.7%. Non-GAAP gross margin of 22.3% expanded 150 basis points year over year.
Segment-wise, data center and networking stood out with 61% growth, reflecting strong AI-driven demand. Aerospace and defense grew 11% and represented 40% of the total revenue contribution. For the second quarter, TTMI expects revenues in the range of $930 million to $970 million.
The Zacks Consensus Estimate for TTMI’s 2026 earnings is pegged at $4.13 per share, up 18 cents in the past 30 days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 9.49%, on average.
Workiva offers an AI-driven platform for accounting, finance, sustainability, risk, and audit teams. The company recently reported first-quarter 2026 results, wherein revenues jumped 20% to $247 million. The performance was driven by subscription revenue growth and disciplined execution. Subscription & support revenues increased 21% year over year to $225 million.
Customers numbered 6,665 as of March 31, 2026, up 280 customers from the prior year period. Gross retention rate was 97%, while the net retention rate was 112%. Currently, 75% of subscription revenues come from multi-solution customers, up from 69% a year ago.
Workiva expects second-quarter revenues to be in the range of $250 million to $252 million, with operating margins between 14.5% and 15%.
The Zacks Consensus Estimate for 2026 earnings is pegged at $2.90 per share, unchanged over the past seven days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 89.03%, on average.
BOSTON--(BUSINESS WIRE)--Toast (NYSE: TOST) released its latest Restaurant Trends Report, providing insight into the state of the U.S. restaurant industry through an analysis of aggregated data from selected cohorts1 of restaurants on the Toast platform, which serves approximately 171,000 locations as of March 31, 2026. Read the full Restaurant Trends Report on Data by Toast.
There’s been a recent sea change in how much of the public interacts with AI technology, thanks to the rapid rise of large language models (LLMs) and other AI technologies. Mundane tasks like summarizing and analyzing sales reports, which may have taken hours before, can often be completed in seconds with a simple prompt.
Toast launched Toast IQ, its AI assistant for restaurants and food-and-beverage retailers, in October 2025 to help operators run their businesses faster and smarter. Because Toast IQ is connected to Toast’s restaurant platform, operators can ask questions and receive insights grounded in their own sales, labor, menu, guest, and operational data — not generic AI outputs. Today, Toast IQ can also take immediate action from users, from 86ing menu items to adjusting stock and editing auto clockouts.
In just 90 days, operators used Toast IQ to ask questions about their sales, labor, menus, guests, and growth opportunities. The signal suggests that restaurant AI is moving beyond experimentation and into everyday operations — helping operators understand what changed, what matters, and what to do next.
To understand how customers are engaging with Toast IQ on a daily basis, Toast analyzed anonymized and aggregated inputs in Toast IQ from over 125,000 restaurant locations on the Toast platform in the U.S. that used Toast IQ Assistant between Jan. 1, 2026, and March 31, 2026.1
Let’s dive in.
Key Takeaways from Q1 2026:
Fine dining is all in on AI: Fine dining locations used Toast IQ 29% more than fast-casual restaurants. Top categories: Operators most frequently initiated conversations about sales and revenue (47% of restaurants using the product), menu and inventory (34%), and guest and marketing (32%). Opportunities: 26% of restaurants initiated conversations about menu optimization. Pain points: 13% of restaurants initiated conversations about labor costs and efficiencies. Top prompt: “Create a short, easy-to-read daily briefing for my restaurant.” Restaurants are moving from AI curiosity to AI-powered operations with millions of threads from Toast IQ in Q1 2026. And hospitality pros were remarkably polite with their AI assistant. We saw 33,000 instances of “please” and “thank you” and just 196 F-bombs.
Restaurants are using AI to manage core business decisions
Sales and revenue, menu and inventory, and guest marketing were among the most common conversation areas.
Toast IQ integrates with each restaurant's operations, serving as a right hand for operators. There’s a personalized “For you” feed that offers timely recommendations, but we also wanted to know what topics operators were inputting on their own in Q1 2026. Here’s what we saw:
47% of restaurants asked about sales and revenue 34% of restaurants asked about menu and inventory 32% of restaurants asked about guests and marketing 29% of restaurants asked about operations and reporting Restaurant operators have a lot on their plates, in every sense. It’s clear operators are asking Toast IQ — an AI assistant that’s built into your business — to help manage and take action on manual processes like sales and inventory data. But not far behind are tasks like getting guests in the door through marketing and ensuring they have the right staff to make the experience the best it can be.
Operator prompts:
Orders and Payments: “Tips today.” Sales and revenue: “Break down today’s gross sales by payment type and call out which methods drove the most revenue.” Menu and inventory: “Refresh my menu items.” “I want to mark multiple items in or out of stock.” Forecasting and planning: “When precipitation is forecasted in the next hour, let me know and tell me anything important I need to know about it.” Stay tuned on Data by Toast for more insights into Toast’s AI assistant, Toast IQ, and how operators are utilizing the technology to run their businesses better. For more insights into AI and Toast IQ, read the full Restaurant Trends Report on Data by Toast.
1Methodology: The selected cohorts in this report are based on an anonymous aggregated view of 125,000 U.S.-based restaurant locations that adopted the use of Toast IQ between Jan 1, 2026, and March 31, 2026. Some functions and features in Toast IQ may not have been available during the entire time period or to all customers.
About the Restaurant Trends Report:
The Restaurant Trends Report, powered by Toast, uncovers key trends across the restaurant industry through aggregated sales data from a selection of cohorts of restaurants on the Toast platform, which has approximately 171,000 locations as of March 31, 2026. This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Individual results may vary. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation. The Restaurant Trends Report is not indicative of the operational performance of Toast or its reported financial metrics.
About Toast
Toast [NYSE: TOST] is a global technology platform built for restaurant and retail businesses. From the busiest local restaurants and shops to large hospitality brands, Toast helps owners and operators manage their businesses more efficiently, drive guest demand, and build lasting success.
Toast integrates software, agentic AI, payments, financial technology solutions, and hardware with a broad partner ecosystem. Powering billions of purchases throughout local commerce, Toast delivers the precision and innovation required for modern restaurant and retail environments. For more information, visit www.toasttab.com.
Toast (TOST - Free Report) closed the most recent trading day at $24.30, moving -2.8% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.62%. Elsewhere, the Dow saw a downswing of 1.87%, while the tech-heavy Nasdaq depreciated by 1.98%.
The restaurant software provider's shares have seen an increase of 7.48% over the last month, surpassing the Computer and Technology sector's loss of 0.74% and the S&P 500's loss of 0.03%.
Analysts and investors alike will be keeping a close eye on the performance of Toast in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.32, marking a 33.33% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.87 billion, indicating a 20.78% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $7.38 billion, which would represent changes of +50.56% and +19.87%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toast. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Toast possesses a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Toast is currently being traded at a Forward P/E ratio of 18.66. This indicates a premium in contrast to its industry's Forward P/E of 18.47.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
