The Trade Desk (TTD) ended the recent trading session at $46.86, demonstrating a +1.54% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.55%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.95%.
Prior to today's trading, shares of the digital-advertising platform operator had lost 11.88% lagged the Computer and Technology sector's gain of 9.88% and the S&P 500's gain of 3.64%.
The upcoming earnings release of The Trade Desk will be of great interest to investors. The company is forecasted to report an EPS of $0.44, showcasing a 7.32% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $718.44 million, indicating a 14.4% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.76 per share and a revenue of $2.87 billion, indicating changes of +6.02% and +17.32%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
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. The Trade Desk is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, The Trade Desk is currently being traded at a Forward P/E ratio of 26.16. For comparison, its industry has an average Forward P/E of 25.36, which means The Trade Desk is trading at a premium to the group.
One should further note that TTD currently holds a PEG ratio of 1.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.71.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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