The Trade Desk (TTD) closed the most recent trading day at $18.24, moving -2.17% from the previous trading session. This change lagged the S&P 500's 0.89% gain on the day. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 1.29%.
Coming into today, shares of the digital-advertising platform operator had gained 3.44% in the past month. In that same time, the Computer and Technology sector lost 6.6%, while the S&P 500 lost 0.63%.
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 $0.41, unchanged from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $751.58 million, reflecting a 8.29% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.88 per share and revenue of $3.18 billion, which would represent changes of +6.21% and +9.82%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 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, there's been a 0.14% rise in the Zacks Consensus EPS estimate. The Trade Desk is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, The Trade Desk is presently trading at a Forward P/E ratio of 9.91. This represents a discount compared to its industry average Forward P/E of 17.28.
It is also worth noting that TTD currently has a PEG ratio of 0.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry had an average PEG ratio of 1.87 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 100, placing it within the top 41% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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The Trade Desk (TTD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).