The Trade Desk (TTD) closed the most recent trading day at $33.81, moving -7.5% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.5% for the day. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.43%.
The stock of digital-advertising platform operator has fallen by 4.59% in the past month, lagging the Computer and Technology sector's loss of 0.15% and the S&P 500's gain of 0.18%.
Analysts and investors alike will be keeping a close eye on the performance of The Trade Desk in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.59, reflecting no change from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $841.87 million, up 13.61% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.78 per share and a revenue of $2.89 billion, indicating changes of +7.23% and 0%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. The Trade Desk presently features a Zacks Rank of #4 (Sell).
In the context of valuation, The Trade Desk is at present trading with a Forward P/E ratio of 17.43. For comparison, its industry has an average Forward P/E of 17.43, which means The Trade Desk is trading at no noticeable deviation to the group.
Meanwhile, TTD's PEG ratio is currently 0.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TTD's industry had an average PEG ratio of 1.79 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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