The latest trading session saw The Trade Desk (TTD) ending at $53.06, denoting a -1.06% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.63% for the day. At the same time, the Dow added 0.21%, and the tech-heavy Nasdaq gained 1.52%.
Shares of the digital-advertising platform operator have depreciated by 4.74% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.66% and the S&P 500's loss of 0.7%.
The investment community will be paying close attention to the earnings performance of The Trade Desk in its upcoming release. The company is slated to reveal its earnings on May 8, 2025. On that day, The Trade Desk is projected to report earnings of $0.25 per share, which would represent a year-over-year decline of 3.85%. Alongside, our most recent consensus estimate is anticipating revenue of $574.27 million, indicating a 16.9% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.79 per share and a revenue of $2.84 billion, signifying shifts of +7.83% and +16.16%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.57% lower. The Trade Desk presently features a Zacks Rank of #5 (Strong Sell).
Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 29.89. This denotes a premium relative to the industry's average Forward P/E of 18.13.
It is also worth noting that TTD currently has a PEG ratio of 1.31. 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 1.32 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 174, finds itself in the bottom 30% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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