The Trade Desk (TTD) ended the recent trading session at $20.25, demonstrating a -2.17% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 2.51%. Elsewhere, the Dow gained 2.85%, while the tech-heavy Nasdaq added 2.8%.
Coming into today, shares of the digital-advertising platform operator had lost 25.16% in the past month. In that same time, the Computer and Technology sector lost 0.84%, while the S&P 500 lost 1.66%.
Investors will be eagerly watching for the performance of The Trade Desk in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.33, showcasing no movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $679.26 million, showing a 10.27% escalation compared to the year-ago quarter.
TTD's full-year Zacks Consensus Estimates are calling for earnings of $2.08 per share and revenue of $3.27 billion. These results would represent year-over-year changes of +17.51% and +12.86%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. The Trade Desk presently features a Zacks Rank of #3 (Hold).
Looking at valuation, The Trade Desk is presently trading at a Forward P/E ratio of 9.95. This signifies a discount in comparison to the average Forward P/E of 14.03 for its industry.
It's also important to note that TTD currently trades at a PEG ratio of 0.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.92.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 172, placing it within the bottom 30% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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The Trade Desk (TTD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).