The Trade Desk (TTD) closed at $69.80 in the latest trading session, marking a -2.84% move from the prior day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.31%.
The digital-advertising platform operator's shares have seen a decrease of 5.55% over the last month, not keeping up with the Computer and Technology sector's gain of 7.62% and the S&P 500's gain of 5.05%.
Analysts and investors alike will be keeping a close eye on the performance of The Trade Desk in its upcoming earnings disclosure. On that day, The Trade Desk is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 7.69%. In the meantime, our current consensus estimate forecasts the revenue to be $684.33 million, indicating a 17.07% 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 $1.77 per share and revenue of $2.85 billion. These totals would mark changes of +6.63% and +16.6%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for The Trade Desk. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, The Trade Desk is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 40.59. This valuation marks a premium compared to its industry average Forward P/E of 19.37.
We can also see that TTD currently has a PEG ratio of 1.77. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on 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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