In the latest trading session, The Trade Desk (TTD) closed at $86.14, marking a +1.34% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.24%.
The digital-advertising platform operator's shares have seen an increase of 24.96% over the last month, surpassing the Computer and Technology sector's gain of 6.84% and the S&P 500's gain of 4.61%.
Analysts and investors alike will be keeping a close eye on the performance of The Trade Desk in its upcoming earnings disclosure. The company's earnings report is set to go public on August 7, 2025. It is anticipated that the company will report an EPS of $0.42, marking a 7.69% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $684.33 million, up 17.07% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.78 per share and revenue of $2.85 billion. These totals would mark changes of +7.23% and +16.75%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.94% higher. Currently, The Trade Desk is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, The Trade Desk is presently being traded at a Forward P/E ratio of 47.83. This denotes a premium relative to the industry average Forward P/E of 20.54.
Investors should also note that TTD has a PEG ratio of 2.08 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services industry currently had an average PEG ratio of 1.61 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 188, positioning it in the bottom 24% of all 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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