The Trade Desk (TTD) closed the latest trading day at $48.48, indicating a -1.55% change from the previous session's end. This move was narrower than the S&P 500's daily loss of 2.24%. Meanwhile, the Dow experienced a drop of 1.73%, and the technology-dominated Nasdaq saw a decrease of 3.07%.
Shares of the digital-advertising platform operator have depreciated by 8.12% over the course of the past month, underperforming the Computer and Technology sector's loss of 6.31% and the S&P 500's loss of 4.17%.
Analysts and investors alike will be keeping a close eye on the performance of The Trade Desk in its upcoming earnings disclosure. In that report, analysts expect The Trade Desk to post earnings of $0.26 per share. This would mark no growth from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $576.13 million, showing a 17.28% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.85 per share and revenue of $2.87 billion, indicating changes of +11.45% and +17.37%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. The Trade Desk is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, The Trade Desk is presently trading at a Forward P/E ratio of 26.66. This indicates a premium in contrast to its industry's Forward P/E of 18.01.
Meanwhile, TTD's PEG ratio is currently 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.18.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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