In the latest trading session, The Trade Desk (TTD) closed at $54.07, marking a +1.08% move from the previous day. This move outpaced the S&P 500's daily gain of 0.58%.
Coming into today, shares of the digital-advertising platform operator had gained 2.08% in the past month. In that same time, the Computer and Technology sector gained 6.37%, while the S&P 500 gained 3.68%.
The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. On that day, The Trade Desk is projected to report earnings of $0.44 per share, which would represent year-over-year growth of 7.32%. Meanwhile, our latest consensus estimate is calling for revenue of $718.44 million, up 14.4% from the prior-year quarter.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 1.39% downward. Right now, The Trade Desk possesses a Zacks Rank of #3 (Hold).
In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 30.32. For comparison, its industry has an average Forward P/E of 24.75, 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 1.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.67.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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