%Toast (NYSE: $TOST) is a small-cap stock that is on a big bull run.
The Boston-based company is a cloud-based restaurant management %Software company. It provides an all-in-one point of sale (POS) system built on the Android operating system for restaurants across the U.S.
Essentially, the company is like a payment app for restaurants large and small. The company also helps restaurants with their customer loyalty programs, promotions, and social media.
Toast went public in 2021 during the Covid-19 pandemic and its stock struggled out of the gate. However, things have really turned around for the share price in the past year.
In the last 12 months, TOST stock has risen 86%, including a 34% gain so far in 2025. The stock has been running straight up since hitting a low this April amid the tariff drama.
The stock has been running hot on improving financial results and bullish investor sentiment towards the financial technology (fintech) space.
Analysts at %Truist (NYSE: $TFC) recently raised their price target on Toast’s stock to $50 U.S. while reiterating a buy rating on the shares.
If there’s a blemish on TOST stock it relates to valuation. Following the big move higher in recent months, Toast’s shares trade at 188 times this year’s earnings estimates.
That lofty valuation has raised eyebrows among some analysts who say that a pullback in the stock is likely in the near-term.
Still, many analysts remain bullish on Toast, saying the company has a large addressable market in the %Restaurant industry and a long runway ahead of it.
Investors looking for a small-cap stock with big growth potential might consider buying TOST stock on any dip or pullback.
