In the latest trading session, The Trade Desk (TTD) closed at $18.93, marking a -4.37% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.9%.
Heading into today, shares of the digital-advertising platform operator had gained 2.7% over the past month, outpacing the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
Market participants will be closely following the financial results of The Trade Desk in its upcoming release. The company is forecasted to report an EPS of $0.41, showcasing no movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $751.58 million, up 8.29% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.88 per share and revenue of $3.18 billion, indicating changes of +6.21% and +9.82%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% upward. The Trade Desk is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 10.53. Its industry sports an average Forward P/E of 17.41, so one might conclude that The Trade Desk is trading at a discount comparatively.
It's also important to note that TTD currently trades at a PEG ratio of 0.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.6.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).