Chart of the Day: Watching Toast as the Stock Gets Burned
Let’s see if the buyers show up soon for this Bullpen name.
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Growth seems to be the name of the game for Toast (TOST). Their point of sale (POS) machines are seen all over the country as they continue to make inroads in many markets. Further, their online ordering and payroll management are newer areas that are high-margin businesses. Toast has clearly defined themselves and are embracing AI as many of their customers embrace products and services brought forth by generative AI.
But witness the chart, which has been quite challenged over the last month or so. Recently peaking at a one-year high, Toast has fallen sharply, more than 20%, which defines the trend as a bear market move. Of course, that can turn quickly, but no question the trend is down, with lower highs and lower lows while the MACD is still on a sell signal (but very oversold).
Money flows are weak and the stochastics are rolling over. With the stock trading around $28-30 we could see a bit more downside to the mid-$20s before some buyers step in. Earnings are out late October.
TheStreet Pro Portfolio does not hold a position in Toast but we are watching it closely from the Bullpen.
More Pro Portfolio:
- Charting the Markets: Leaving an Ugly September Behind
- 26 Signals Across 9 Portfolio Themes
- Weekly Roundup: Waiting for the Market to Show Its Hand
At the time of publication, TheStreet Pro Portfolio had no positions in any securities mentioned.
