The Trade Desk (TTD) closed the latest trading day at $56.30, indicating a -1.4% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 0.87%.
The digital-advertising platform operator's shares have seen a decrease of 15.53% over the last month, not keeping up with the Computer and Technology sector's loss of 7.99% and the S&P 500's loss of 5.28%.
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 forecasted to report an EPS of $0.26, showcasing no movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $576.13 million, up 17.28% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.85 per share and a revenue of $2.9 billion, indicating changes of +11.45% and +18.43%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. The Trade Desk presently features a Zacks Rank of #3 (Hold).
In terms of valuation, The Trade Desk is presently being traded at a Forward P/E ratio of 30.92. This signifies a premium in comparison to the average Forward P/E of 25.03 for its industry.
We can additionally observe that TTD currently boasts a PEG ratio of 1.35. 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. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.32.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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