In the latest close session, The Trade Desk (TTD) was down 1.06% at $50.73. The stock's performance was behind the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, lost 0.76%.
Shares of the digital-advertising platform operator witnessed a gain of 12.59% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.34%, and the S&P 500's gain of 1.14%.
The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.44, reflecting a 7.32% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $717.95 million, up 14.32% from the year-ago period.
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 +17.23%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The Trade Desk. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. The Trade Desk is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 29.07. This expresses a premium compared to the average Forward P/E of 24.27 of its industry.
One should further note that TTD currently holds a PEG ratio of 1.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.65.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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