 Toast shares are up over 21% year-to-date and nearly 200% over the past three years, with strong earnings and technical momentum.. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ |
| | Written by Ryan Hasson 
The market has surged to fresh highs in recent weeks, with the technology sector continuing to lead the charge. The Technology Select Sector SPDR Fund (NYSEARCA: XLK) is trading at all-time highs, and within the sector, software names in particular have remained standout performers. As the bull market extends, appetite for growth and momentum continues to rise, especially for companies with strong technical setups. One name that stands out in this environment is Toast Inc. (NYSE: TOST). Shares of the cloud-based restaurant software company are up over 21% year-to-date, and nearly 200% over the past three years. Despite a lofty valuation, the stock continues to attract interest, and it may have further room to run. What Is Toast, Inc.? Toast, Inc., is a cloud-based restaurant management platform that provides integrated hardware and software solutions. Designed specifically for the full-service and quick-service restaurant industries, Toast enables restaurants to manage real-time orders, payments, operations, and customer engagement. The platform covers everything from front-of-house point-of-sale terminals and handheld devices to kitchen display systems and self-service kiosks. Since launching its first product in 2013, Toast has expanded rapidly across the U.S., serving independent restaurants, multi-location chains, and franchise groups. The company has established partnerships with delivery services, financial institutions, and technology vendors to strengthen its ecosystem further. As of Monday’s close, Toast commands a market capitalization of $25.6 billion, solidly placing it in the mid-cap category. Positive Sentiment and Strong Earnings Momentum The mid-cap space has been gaining strength overall, with the S&P MidCap 400 ETF (NYSEARCA: MDY) pushing toward a major breakout near the $570 level. This broadening market strength is helping fuel sentiment for mid-cap growth names, such as Toast. Analyst sentiment has also turned increasingly bullish. Among 24 analysts covering the stock, 12 rate it a Buy and 12 rate it a Hold, an improvement from prior months when the consensus was a more neutral Hold. Part of the optimism is driven by improving technicals and positive earnings momentum. On May 8, 2025, Toast reported strong Q1 earnings, beating EPS estimates and reaffirming its growth trajectory. The company delivered EPS of $0.10, representing a 167% year-over-year increase, which exceeded consensus expectations. Revenue came in at $1.34 billion, up 24.7%, in line with analyst forecasts. Toast also reported net income of $56 million, representing a 75% quarter-over-quarter increase, and adjusted EBITDA reached $133 million, with GAAP operating income of $43 million. In addition to the substantial headline numbers, Toast reported 31% growth in annual recurring revenue (ARR), with SaaS ARR climbing 32%. The company added over 6,000 net new locations, bringing its global total to approximately 140,000. Notable enterprise wins during the quarter included new partnerships with Applebee’s and Topgolf. Toast also unveiled ToastIQ, its new AI-driven intelligence engine designed to enhance restaurant performance and decision-making. The company raised its full-year 2025 outlook, projecting 26% growth in fintech and subscription gross profit and $550 million in adjusted EBITDA. Following the report, the stock jumped nearly 20% as investors responded to the earnings beat and improved guidance. Institutional Activity Supports the Bull Case Institutional support has been a key factor in TOST’s strength. Over the past 12 months, $4.5 billion in institutional capital has flowed into the stock, compared to $2.4 billion in outflows. With 82.9% of shares held by institutions, Toast continues to be a name that several funds are actively accumulating. Watch the $45 Breakout Level Technically, TOST is consolidating just below a key resistance area near $45. Since the post-earnings rally, the stock has spent over a month digesting gains in a tightening range. A breakout above this level could trigger another leg higher, with momentum traders potentially targeting a move toward $50. On the downside, $42 is acting as short-term support. If the stock pulls back into that area, it may present an attractive entry point for longer-term investors looking for a favorable risk-reward setup and potential entry point.  Read This Story Online |  Everyone is focusing on AI stocks...
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| Written by Sam Quirke 
On a day when the S&P 500 hit a fresh record high, Disney Inc. (NYSE: DIS) gave its investors something to cheer about by hitting a multi-year high of its own. Monday’s session saw the stock print its highest level since August 2022, as it looked finally ready to break out of the multi-year range it’s been trapped in. It’s only been a few weeks since it was testing the lower end of that range back in April, but after rallying more than 50% since then, Disney is shaping up as one of the summer’s most exciting comeback plays. Much of this upside has been fueled by May’s strong earnings report and a general resurgence in risk appetite across equities, and investors would be forgiven for thinking the stock wanted to take a breather. However, analysts' fresh commentary this week suggests plenty more gains to come. Massive Upside From Cruises for Disney The team over at Jefferies upgraded Disney to Buy on Monday, lifting their price target to $144 and joining the growing chorus of bulls that includes Guggenheim and Rosenblatt, both of whom raised their targets to $140 in June. Jefferies had previously flagged macroeconomic concerns, a slowdown in consumer spending, and increasing competition as reasons to be cautious on Disney, but those fears have since eased. They cited positive commentary around Disney World bookings while pointing to two new cruise ships due in 2026, which are expected to generate as much as $1.5 billion in fresh revenue. It’s a strong vote of confidence in Disney’s ability to drive top-line growth from multiple levers, and it also highlights how the company is being viewed through various lenses. This optimism around its diversification efforts is a powerful tailwind for the stock, particularly as it breaks out from technical resistance. The Technical Setup Is Pointing Higher For the better part of the past two years, Disney has failed to break through resistance around the $125 level. Each time shares have been tested since August 2022, they have been turned around and invariably sent back to test the lows below $90. This pattern looks like it could soon be over, though, based on the stock’s price action of the past week, it just set a new high for 2025, surpassed the highs from 2024 and 2023 and closed on June 30 less than 2% away from the peak in August 2022. If it can hold onto this momentum in the coming sessions, the door should be open for a move to, and through, $130 in the short term. From there, the path to Jefferies’ $144 target looks relatively straightforward, especially with strong market momentum behind it. A Word of Caution That said, the RSI is starting to look extended, closing on Monday just under 78, which puts it in extremely overbought territory. While that suggests a near-term cooldown could be on the table, it’s also a classic hallmark of a stock in a strong trend and could easily go higher if the breakout is confirmed and the algorithms start picking it up. Disney’s bulls will want to see this kind of technical strength, and the ongoing bullish MACD crossover only reinforces that this is a rally with some room to run yet. The only other near-term risk worth flagging is the upcoming earnings report in the first week of August. Expectations will be high, with the stock up more than 50% since April, and RSI will get a little frothy. Any stumble could derail momentum, even if only temporarily. Still, analyst support is overwhelmingly bullish, and the breakout is all but confirmed. If Disney can build on this week’s gains and stay above $125, a run toward new multi-year highs is far more likely. Read This Story Online |  |
| Written by Leo Miller 
For International Business Machines (NYSE: IBM) and Accenture (NYSE: ACN), markets have reacted in starkly different fashion to the stories of these two Gen-AI consulting leaders. Both companies have built multi-billion-dollar Gen-AI businesses, but one stock has soared, while the other hasn’t. Over the past 52 weeks, IBM shares have provided a total return of approximately 76% as of the June 30 close. Meanwhile, Accenture’s total return is approximately 0%. This divergence in returns has led Wall Street forecasts to see solid downside potential in IBM, while seeing notable upside potential in Accenture. Importantly, Accenture's Gen-AI business is growing considerably faster. However, why has the stock been unable to capture gains like IBM, and why are analysts predicting that this can change? Accenture’s Gen AI Book: Smaller, But Faster Growing Than Big Blue IBM’s success in Gen-AI has been well documented. The tech company’s Gen-AI book of business grew to $6 billion from inception through March of this year. IBM achieved this over seven quarters, as the company started reporting this figure back in Q3 2023. This implies average quarterly booking growth of around $850 million. Many may not be aware that Accenture has a sizable Gen-AI business. Through the three quarters ending May 31, Accenture’s Gen-AI book of business stands at $4.1 billion. This figure implies average Gen-AI bookings growth of nearly $1.37 billion per quarter. Accenture’s Gen-AI bookings growth of $1.5 billion last quarter was also 50% higher than IBM’s “more than $1 billion” figure. Accenture's later reporting date likely benefited the firm due to AI growth. Still, Accenture clearly had a stronger quarter than IBM in Gen-AI. So why is the company’s stock not getting much love from the market? ACN: Macro and Internal Issues Cast Cloud Over AI Wins Unfortunately, Accenture's impressive Gen-AI story is being overshadowed by many other parts of its business. Accenture is a massive company, and other business lines are not performing well. The company’s overall bookings, a signal of future revenue, declined by 6% last quarter. The company stated that "a significantly elevated level of uncertainty" in the economy this year is impacting its customers. As a consulting firm, many of the services the firm provides are discretionary. In periods of uncertainty, discretionary spending is the first thing to be negatively affected. Accenture’s federal government business is also slowing, and the company sees this as a 2% headwind to overall revenue growth next quarter. However, the company also noted that it is prioritizing “reinvention” through Gen AI. This is helping the company’s Gen-AI business, but it could also cannibalize clients and other revenue streams. Still, in the long run, this is likely a positive development for Accenture as it looks to be a leader in AI consulting. Additionally, the company is dealing with the loss of key leadership figures and a long-term internal restructuring of its services segment. These worries cloud the company’s future, making it difficult for investors to reward the firm for its AI accomplishments. The firm’s Gen AI bookings still comprise less than 8%. So, they don’t move the overall needle in a big way yet. Overall, the company is dealing with some significant near-to-mid-term challenges. However, Gen AI is vital to the firm’s long-term success. The fact that it is winning on this front positions the stock nicely over the coming years. Wall Street Sees Significantly More Upside in Accenture, But Patience Is Paramount The MarketBeat-tracked consensus price target on IBM is around $254, implying over 13% downside from the stock’s June 30 closing price. However, its two most recently updated price targets are $325 and $320, signaling around 10% upside. The MarketBeat-tracked consensus price target for Accenture is $370, implying nearly 24% upside. Although many on Wall Street see downside in IBM and upside in Accenture, that doesn’t make the two mutually exclusive. Investors could view IBM as the proven performer and momentum play when it comes to capitalizing on AI services and consulting. Meanwhile, Accenture is a longer-duration and cheaper play. Accenture’s approximately 22x forward price to earnings (P/E) ratio is solidly less expensive than the 26x figure IBM trades at. This difference likely incorporates the headwinds Accenture is currently facing. However, Accenture has a significant opportunity to see its Gen-AI progress rewarded going forward after these other issues subside. Still, that could take a long time. Read This Story Online |  As you may recall, Biden and the Fed were working on a central bank digital currency, or CBDC.
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