In the latest trading session, The Trade Desk (TTD) closed at $36.23, marking a -2.42% move from the previous day. This change lagged the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.25%.
Heading into today, shares of the digital-advertising platform operator had lost 0.11% over the past month, lagging the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57%.
Investors will be eagerly watching for the performance of The Trade Desk in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.59, signifying steadiness compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $841.87 million, up 13.61% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.78 per share and a revenue of $2.89 billion, demonstrating changes of +7.23% and 0%, respectively, from the preceding year.
Any recent changes to analyst estimates for The Trade Desk should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, The Trade Desk boasts a Zacks Rank of #3 (Hold).
In the context of valuation, The Trade Desk is at present trading with a Forward P/E ratio of 17.71. This valuation marks a discount compared to its industry average Forward P/E of 18.51.
Also, we should mention that TTD has a PEG ratio of 0.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry currently had an average PEG ratio of 1.77 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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