The Trade Desk (TTD) closed at $86.08 in the latest trading session, marking a -1.01% move from the prior day. This change was narrower than the S&P 500's 1.6% loss on the day. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 2.24%.
Prior to today's trading, shares of the digital-advertising platform operator had gained 16.87% outpaced the Computer and Technology sector's gain of 4.45% and the S&P 500's gain of 2.25%.
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. 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 $684.46 million, up 17.09% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.78 per share and a revenue of $2.86 billion, indicating changes of +7.23% and +17.15%, respectively, from the former 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. The Trade Desk is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 48.94. This signifies a premium in comparison to the average Forward P/E of 19.18 for its industry.
Investors should also note that TTD has a PEG ratio of 2.13 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 1.52 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 174, positioning it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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The Trade Desk (TTD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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