In the latest close session, The Trade Desk (TTD) was down 6.78% at $12.24. The stock trailed the S&P 500, which registered a daily loss of 1.09%. On the other hand, the Dow registered a loss of 0.34%, and the technology-centric Nasdaq decreased by 2.15%.
Coming into today, shares of the digital-advertising platform operator had lost 7.92% in the past month. In that same time, the Computer and Technology sector gained 1.99%, while the S&P 500 gained 2.44%.
The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 42.22% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $650.67 million, showing a 12% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.22 per share and a revenue of $2.84 billion, demonstrating changes of -31.07% and -1.98%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for The Trade Desk. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.4% higher. Currently, The Trade Desk is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 10.74. For comparison, its industry has an average Forward P/E of 14.82, which means The Trade Desk is trading at a discount to the group.
We can also see that TTD currently has a PEG ratio of 0.61. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).