In the latest trading session, The Trade Desk (TTD) closed at $49.01, marking a -1.27% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.31%.
The digital-advertising platform operator's shares have seen a decrease of 9.18% over the last month, not keeping up with the Computer and Technology sector's gain of 7.63% and the S&P 500's gain of 3.15%.
Investors will be eagerly watching for the performance of The Trade Desk in its upcoming earnings disclosure. 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 Zacks Consensus Estimate for revenue is projecting net sales of $718.44 million, up 14.4% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.76 per share and revenue of $2.87 billion, indicating changes of +6.02% and +17.32%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.39% lower. Currently, The Trade Desk is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 28.14. This expresses a premium compared to the average Forward P/E of 24.51 of its industry.
Investors should also note that TTD has a PEG ratio of 1.39 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 Internet - Services was holding an average PEG ratio of 1.65 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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