TOAST INC-CLASS A (NYSE:TOST) – A Strong Growth Stock Meeting Minervini’s Trend Template

TOAST INC-CLASS A (NYSE:TOST) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template criteria. The company, which provides a cloud-based restaurant management platform, demonstrates strong technical and fundamental characteristics that make it a compelling candidate for growth-focused investors.

Technical Strength: Meeting Minervini’s Trend Template

TOST satisfies key technical criteria outlined in Minervini’s strategy, which focuses on identifying stocks in strong uptrends:

• Price Above Key Moving Averages:
  • Current price ($44.01) is above the 50-day ($37.89), 150-day ($37.86), and 200-day ($35.13) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.
• Upward-Trending Moving Averages:
  • The 200-day MA is rising, reinforcing a long-term uptrend.
• Strong Relative Strength:
  • TOST has a ChartMill Relative Strength (CRS) score of 95.92, indicating it outperforms nearly 96% of the market.
• Price Near 52-Week High:
  • Trading at $44.01, TOST is within 3.4% of its 52-week high ($45.56).
  • The stock is up ~99.9% over the past year, well above its 52-week low ($21.32).

Fundamental Growth Drivers

Beyond technicals, TOST exhibits strong growth metrics that appeal to momentum investors:

• Earnings Growth:
  • EPS (TTM) grew 144.7% YoY, with recent quarterly EPS growth accelerating (Q2Q: +160%).
  • Analysts have raised next-year EPS estimates by 21% over the past three months.
• Revenue Expansion:
  • Revenue grew 28.3% in the last fiscal year, with consistent quarterly growth (latest quarter: +24.4%).
• Improving Profitability:
  • Profit margins expanded to 4.19% in the latest quarter, up from 1.13% a year ago.
  • Free cash flow per share surged 300% YoY.
• Positive Earnings Surprises:
  • TOST has beaten EPS estimates in three of the last four quarters, with an average beat of 106.4%.

Technical Outlook & Setup

ChartMill’s technical report assigns TOST a perfect 10/10 technical rating, citing:

• Strong short- and long-term uptrends.
• Leadership within the Financial Services sector (outperforming 97% of peers).
• High liquidity with average daily volume of ~7.59M shares.

While the setup rating is 6/10, suggesting some volatility, the stock remains well-positioned for further upside if it consolidates near current levels.

For a deeper analysis, review the full technical report on TOST.

Our High Growth Momentum + Trend Template screener lists more high-growth stocks that meet Minervini’s criteria.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.