The Trade Desk (TTD) closed at $73.56 in the latest trading session, marking a -1.14% move from the prior day. This move lagged the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, lost 0.92%.
The digital-advertising platform operator's shares have seen an increase of 4.13% over the last month, not keeping up with the Computer and Technology sector's gain of 7.88% and the S&P 500's gain of 5.22%.
The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. In that report, analysts expect The Trade Desk to post earnings of $0.42 per share. This would mark year-over-year growth of 7.69%. Meanwhile, the latest consensus estimate predicts the revenue to be $684.33 million, indicating a 17.07% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.77 per share and a revenue of $2.85 billion, signifying shifts of +6.63% and +16.6%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The Trade Desk. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, The Trade Desk holds a Zacks Rank of #3 (Hold).
In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 42.04. This represents a premium compared to its industry average Forward P/E of 20.75.
We can also see that TTD currently has a PEG ratio of 1.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.53.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 39% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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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