In the latest trading session, The Trade Desk (TTD) closed at $80.21, marking a -1.51% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.05%.
Heading into today, shares of the digital-advertising platform operator had gained 18.61% over the past month, outpacing the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37%.
The upcoming earnings release of The Trade Desk will be of great interest to investors. The company is expected to report EPS of $0.42, up 7.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $684.33 million, up 17.07% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.77 per share and a revenue of $2.85 billion, demonstrating changes of +6.63% and +16.63%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, The Trade Desk is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, The Trade Desk is presently trading at a Forward P/E ratio of 46.01. For comparison, its industry has an average Forward P/E of 19.76, which means The Trade Desk is trading at a premium to the group.
It's also important to note that TTD currently trades at a PEG ratio of 2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TTD's industry had an average PEG ratio of 1.55 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 39% echelons of all 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.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.
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The Trade Desk (TTD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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