The Trade Desk (TTD) closed the latest trading day at $53.92, indicating a +1.22% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.74%. Elsewhere, the Dow saw an upswing of 0.05%, while the tech-heavy Nasdaq appreciated by 1.26%.
Shares of the digital-advertising platform operator have depreciated by 6.97% over the course of the past month, underperforming the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77%.
Investors will be eagerly watching for the performance of The Trade Desk in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 8, 2025. The company's earnings per share (EPS) are projected to be $0.25, reflecting a 3.85% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $574.27 million, up 16.9% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.79 per share and a revenue of $2.84 billion, representing changes of +7.83% and +16.16%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.57% downward. The Trade Desk is currently sporting a Zacks Rank of #4 (Sell).
Looking at valuation, The Trade Desk is presently trading at a Forward P/E ratio of 29.69. This signifies a premium in comparison to the average Forward P/E of 18.61 for its industry.
It is also worth noting that TTD currently has a PEG ratio of 1.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TTD's industry had an average PEG ratio of 1.3 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 178, this industry ranks in the bottom 29% of all industries, numbering over 250.
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.
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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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