The Trade Desk (TTD) ended the recent trading session at $27.23, demonstrating a -3.2% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq lost 0.16%.
The digital-advertising platform operator's shares have seen a decrease of 24.26% over the last month, not keeping up with the Computer and Technology sector's loss of 1.54% and the S&P 500's loss of 0.28%.
The upcoming earnings release of The Trade Desk will be of great interest to investors. The company's earnings report is expected on February 25, 2026. The company is expected to report EPS of $0.59, unchanged from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $841.87 million, indicating a 13.61% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.78 per share and revenue of $2.89 billion. These totals would mark changes of +7.23% and +18.26%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, The Trade Desk holds a Zacks Rank of #4 (Sell).
Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 13.42. This valuation marks a discount compared to its industry average Forward P/E of 15.58.
It is also worth noting that TTD currently has a PEG ratio of 0.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 1.8 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 36% 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.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.
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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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