Toast Inc. highlighted as undervalued amid market divergence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 19 2024
0mins
Source: Coinmarketcap
Toast Inc. (TOST) has seen a price decline of 5.12% as it crosses below its 5-day SMA, reflecting the ongoing pressure in the software sector.
The stock is identified as undervalued amid a broader market rise, with analysts noting that the software sell-off has negatively impacted its valuation, presenting a potential rebound opportunity for investors. This divergence in market performance suggests that while the overall market is stable, certain stocks like Toast may attract attention for their attractive valuations.
Investors are encouraged to monitor these undervalued stocks as the market sentiment shifts, potentially leading to increased interest and investment opportunities.
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Analyst Views on TOST
Wall Street analysts forecast TOST stock price to rise
21 Analyst Rating
13 Buy
8 Hold
0 Sell
Moderate Buy
Current: 25.220
Low
36.00
Averages
47.00
High
60.00
Current: 25.220
Low
36.00
Averages
47.00
High
60.00
About TOST
Toast, Inc. is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. It provides a platform of software-as-a-service (SaaS) products and financial technology solutions, including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners. It serves as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Its products include point-of-sale (POS) & restaurant operations, marketing, online ordering & delivery, team management, vendor management, retail, and financial technology solutions. Its in-store POS and restaurant operations offerings are built to help reduce time to take an order, optimize operations, and handle payments. Its marketing products provide integrated solutions to deliver targeted email and SMS campaigns, build loyalty programs, offer gift cards, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Market Rises but Some Stocks Remain Undervalued
- Market Divergence: While the overall market continues to rise, many stocks remain in the red year-to-date, indicating a divergence that investors should monitor for potential opportunities.
- Undervalued Stock Insight: Toast (TOST) is highlighted as a stock under pressure due to the software sell-off in 2026, with its current valuation appearing attractive, potentially offering a rebound opportunity for investors.
- Investor Focus: As market sentiment shifts, many undervalued stocks may attract investor attention, making it crucial to seek value investment opportunities in the current economic climate.
- Video Content Preview: The video will delve into four stocks perceived as undervalued by the market, aiding investors in identifying potential investment opportunities and encouraging subscriptions for more market insights.
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Toast Sponsors ICC UK Trade & Export Initiative
- Global Business Expansion: As a proud sponsor of the ICC UK's Trade & Export initiative, Toast supports the expansion of 45 million companies globally, facilitating smooth operations for hospitality brands between the UK and the US, thereby enhancing their market competitiveness.
- Technology Platform Advantage: Toast provides a unified operational foundation that enables operators to maintain consistency and confidence across different markets, allowing them to focus on business growth rather than managing complexity, which further strengthens its influence in the global market.
- Increased Customer Satisfaction: A survey revealed that 87% of customers find the Toast platform easy to use, which not only boosts employee efficiency but also enhances brand adaptability in new markets during expansion, promoting customer loyalty.
- Diverse Support Teams: Toast offers localized support across 171,000 locations globally, ensuring 24/7 customer service to help operators tackle local market challenges, thus driving their success in international expansion.
See More
Toast Q1 2026 Results Meet Revenue Expectations
- Strong Performance: Toast's Q1 2026 revenue reached $1.63 billion, meeting Wall Street expectations with a year-on-year growth of 21.9%, indicating robust growth potential driven by its AI-powered Toast IQ platform and new market expansions.
- Profitability Improvement: Adjusted EPS was $0.29, beating analyst expectations of $0.27, while adjusted operating income was $179 million, exceeding the forecast by $1.585 million, reflecting effective strategies in cost control and revenue growth.
- Market Expansion: Annual recurring revenue hit $2.15 billion, growing 25.6% year-on-year, with total billings at $1.64 billion, up 22.4%, showcasing Toast's ongoing expansion in enterprise customers and international markets.
- Future Outlook: Management emphasized a continued focus on balancing the pace of AI product adoption with profitability, acknowledging near-term cost pressures from hardware inventory and tariffs, while maintaining long-term profitability as a strategic priority.
See More
Toast Reports Strong Growth Amid Market Challenges
- Significant Revenue Growth: Toast's Q1 revenue increased by 22% year-over-year to $1.63 billion, with subscription revenue rising 28% to $268 million, demonstrating strong performance in the software services sector despite a challenging market environment.
- Increased Payment Volume: The company's gross payment volume (GPV) rose by 22% to $51.3 billion, indicating a sustained increase in market penetration within the restaurant industry, thereby enhancing its competitive position.
- Annual Recurring Revenue Surge: Toast's annual recurring revenue (ARR) jumped 26% to $2.2 billion, reflecting improved profitability from its subscription and payment processing businesses, which further solidifies the company's financial foundation.
- Optimistic Outlook: Toast raised its 2026 gross profit forecast for subscription services and fintech to a growth range of 21% to 23%, showcasing confidence in future growth and providing an attractive proposition for investors.
See More
Cathie Wood Doubles Down on CoreWeave and Other Tech Stocks Amid Market Declines
- CoreWeave Financial Analysis: CoreWeave's stock fell 11% on Friday despite a 112% year-over-year revenue increase to $2.078 billion in Q1, as a loss of $1.40 per share exceeded expectations, undermining investor confidence even as the company aggressively invests in growth amid surging AI demand.
- Surge in Order Commitments: CoreWeave secured $40 billion in new order commitments this quarter, bringing its total backlog to a staggering $100 billion, indicating robust demand for high-performance GPU computing infrastructure and suggesting continued revenue growth potential despite current profitability challenges.
- Cloudflare Earnings Review: Cloudflare's stock dropped 23.53% despite a 34% revenue increase to $640 million and adjusted earnings of $0.25 per share, as cautious guidance for future revenues and a decision to lay off 1,100 employees raised concerns about its long-term growth prospects in a competitive market.
- Toast Market Performance: Toast's stock declined 14.74% despite doubling its net income and operating profit in Q1 and adding 7,000 new restaurant locations, reflecting market skepticism regarding short-term challenges in the restaurant industry and margin pressures that overshadowed its otherwise strong performance.
See More
Fluence Energy Shares Soar Nearly 30% After Upgrades
- Fluence Energy Surge: Fluence Energy's stock soared nearly 30% after its fiscal second-quarter EBITDA exceeded Wall Street estimates, following a prior session surge of about 40%, indicating strong market confidence in its growth potential and attracting more investor interest.
- Corpay Raises Guidance: Corpay shares jumped 10% after the company raised its full-year earnings guidance to a range of $26.30 to $27.10 per share, surpassing analyst expectations of $26.05, reflecting robust performance in the corporate payments sector and potentially increasing market share.
- Akamai Technologies Rises: Akamai's stock surged 20% after securing an $1.8 billion commitment from a leading U.S. frontier model provider for its Cloud Infrastructure Services, indicating strong demand in the market, while also reporting a first-quarter adjusted earnings beat that bolstered investor confidence.
- Upwork Restructuring Impact: Upwork's shares tumbled 21% following its announcement of a 24% workforce reduction to ensure profitability, despite slightly lower-than-expected first-quarter earnings and revenue, which may affect its future competitive position and investor sentiment.
See More
Market Rises but Some Stocks Remain Undervalued
- Market Divergence: While the overall market continues to rise, many stocks remain in the red year-to-date, indicating a divergence that investors should monitor for potential opportunities.
- Undervalued Stock Insight: Toast (TOST) is highlighted as a stock under pressure due to the software sell-off in 2026, with its current valuation appearing attractive, potentially offering a rebound opportunity for investors.
- Investor Focus: As market sentiment shifts, many undervalued stocks may attract investor attention, making it crucial to seek value investment opportunities in the current economic climate.
- Video Content Preview: The video will delve into four stocks perceived as undervalued by the market, aiding investors in identifying potential investment opportunities and encouraging subscriptions for more market insights.
See More
Toast Sponsors ICC UK Trade & Export Initiative
- Global Business Expansion: As a proud sponsor of the ICC UK's Trade & Export initiative, Toast supports the expansion of 45 million companies globally, facilitating smooth operations for hospitality brands between the UK and the US, thereby enhancing their market competitiveness.
- Technology Platform Advantage: Toast provides a unified operational foundation that enables operators to maintain consistency and confidence across different markets, allowing them to focus on business growth rather than managing complexity, which further strengthens its influence in the global market.
- Increased Customer Satisfaction: A survey revealed that 87% of customers find the Toast platform easy to use, which not only boosts employee efficiency but also enhances brand adaptability in new markets during expansion, promoting customer loyalty.
- Diverse Support Teams: Toast offers localized support across 171,000 locations globally, ensuring 24/7 customer service to help operators tackle local market challenges, thus driving their success in international expansion.
See More
Toast Q1 2026 Results Meet Revenue Expectations
- Strong Performance: Toast's Q1 2026 revenue reached $1.63 billion, meeting Wall Street expectations with a year-on-year growth of 21.9%, indicating robust growth potential driven by its AI-powered Toast IQ platform and new market expansions.
- Profitability Improvement: Adjusted EPS was $0.29, beating analyst expectations of $0.27, while adjusted operating income was $179 million, exceeding the forecast by $1.585 million, reflecting effective strategies in cost control and revenue growth.
- Market Expansion: Annual recurring revenue hit $2.15 billion, growing 25.6% year-on-year, with total billings at $1.64 billion, up 22.4%, showcasing Toast's ongoing expansion in enterprise customers and international markets.
- Future Outlook: Management emphasized a continued focus on balancing the pace of AI product adoption with profitability, acknowledging near-term cost pressures from hardware inventory and tariffs, while maintaining long-term profitability as a strategic priority.
See More
Toast Reports Strong Growth Amid Market Challenges
- Significant Revenue Growth: Toast's Q1 revenue increased by 22% year-over-year to $1.63 billion, with subscription revenue rising 28% to $268 million, demonstrating strong performance in the software services sector despite a challenging market environment.
- Increased Payment Volume: The company's gross payment volume (GPV) rose by 22% to $51.3 billion, indicating a sustained increase in market penetration within the restaurant industry, thereby enhancing its competitive position.
- Annual Recurring Revenue Surge: Toast's annual recurring revenue (ARR) jumped 26% to $2.2 billion, reflecting improved profitability from its subscription and payment processing businesses, which further solidifies the company's financial foundation.
- Optimistic Outlook: Toast raised its 2026 gross profit forecast for subscription services and fintech to a growth range of 21% to 23%, showcasing confidence in future growth and providing an attractive proposition for investors.
See More
Cathie Wood Doubles Down on CoreWeave and Other Tech Stocks Amid Market Declines
- CoreWeave Financial Analysis: CoreWeave's stock fell 11% on Friday despite a 112% year-over-year revenue increase to $2.078 billion in Q1, as a loss of $1.40 per share exceeded expectations, undermining investor confidence even as the company aggressively invests in growth amid surging AI demand.
- Surge in Order Commitments: CoreWeave secured $40 billion in new order commitments this quarter, bringing its total backlog to a staggering $100 billion, indicating robust demand for high-performance GPU computing infrastructure and suggesting continued revenue growth potential despite current profitability challenges.
- Cloudflare Earnings Review: Cloudflare's stock dropped 23.53% despite a 34% revenue increase to $640 million and adjusted earnings of $0.25 per share, as cautious guidance for future revenues and a decision to lay off 1,100 employees raised concerns about its long-term growth prospects in a competitive market.
- Toast Market Performance: Toast's stock declined 14.74% despite doubling its net income and operating profit in Q1 and adding 7,000 new restaurant locations, reflecting market skepticism regarding short-term challenges in the restaurant industry and margin pressures that overshadowed its otherwise strong performance.
See More
Fluence Energy Shares Soar Nearly 30% After Upgrades
- Fluence Energy Surge: Fluence Energy's stock soared nearly 30% after its fiscal second-quarter EBITDA exceeded Wall Street estimates, following a prior session surge of about 40%, indicating strong market confidence in its growth potential and attracting more investor interest.
- Corpay Raises Guidance: Corpay shares jumped 10% after the company raised its full-year earnings guidance to a range of $26.30 to $27.10 per share, surpassing analyst expectations of $26.05, reflecting robust performance in the corporate payments sector and potentially increasing market share.
- Akamai Technologies Rises: Akamai's stock surged 20% after securing an $1.8 billion commitment from a leading U.S. frontier model provider for its Cloud Infrastructure Services, indicating strong demand in the market, while also reporting a first-quarter adjusted earnings beat that bolstered investor confidence.
- Upwork Restructuring Impact: Upwork's shares tumbled 21% following its announcement of a 24% workforce reduction to ensure profitability, despite slightly lower-than-expected first-quarter earnings and revenue, which may affect its future competitive position and investor sentiment.
See More
