In the latest close session, The Trade Desk (TTD) was down 3.06% at $18.08. The stock fell short of the S&P 500, which registered a gain of 0.79% for the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.
The digital-advertising platform operator's shares have seen a decrease of 19.68% over the last month, not keeping up with the Computer and Technology sector's loss of 4.61% and the S&P 500's loss of 1.82%.
Analysts and investors alike will be keeping a close eye on the performance of The Trade Desk in its upcoming earnings disclosure. The company is expected to report EPS of $0.4, down 2.44% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $751.76 million, showing a 8.32% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.87 per share and revenue of $3.18 billion, indicating changes of +5.65% and +9.81%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for The Trade Desk. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. The Trade Desk is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 9.97. This valuation marks a discount compared to its industry average Forward P/E of 14.82.
We can additionally observe that TTD currently boasts a PEG ratio of 0.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Services stocks are, on average, holding a PEG ratio of 1.58 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).