The Trade Desk (TTD) closed at $44.90 in the latest trading session, marking a -1.42% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a drop of 0.27%, and the technology-dominated Nasdaq saw a decrease of 0.07%.
The stock of digital-advertising platform operator has fallen by 17.13% in the past month, lagging the Computer and Technology sector's gain of 6.17% and the S&P 500's gain of 2.71%.
Investors will be eagerly watching for the performance of The Trade Desk in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.44, marking a 7.32% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $718.44 million, up 14.4% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.76 per share and a revenue of $2.87 billion, signifying shifts of +6.02% and +17.32%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for The Trade Desk. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 1.39% lower within the past month. Right now, The Trade Desk possesses a Zacks Rank of #3 (Hold).
Investors should also note The Trade Desk's current valuation metrics, including its Forward P/E ratio of 25.82. For comparison, its industry has an average Forward P/E of 25.2, which means The Trade Desk is trading at a premium to the group.
Meanwhile, TTD's PEG ratio is currently 1.27. 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 average PEG ratio for the Internet - Services industry stood at 1.69 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 40% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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