In the latest trading session, The Trade Desk (TTD) closed at $29.74, marking a -1.96% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.56%.
Shares of the digital-advertising platform operator witnessed a loss of 19.51% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.44%, and the S&P 500's gain of 0.74%.
Analysts and investors alike will be keeping a close eye on the performance of The Trade Desk in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.59, marking stability compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $841.87 million, up 13.61% from the year-ago period.
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.
Investors might also notice recent changes to analyst estimates for The Trade Desk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, there's been no change in the Zacks Consensus EPS estimate. The Trade Desk presently features a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that The Trade Desk has a Forward P/E ratio of 14.47 right now. This expresses a discount compared to the average Forward P/E of 16.96 of its industry.
We can also see that TTD currently has a PEG ratio of 0.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry currently had an average PEG ratio of 1.84 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 150, finds itself in the bottom 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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