In the latest trading session, The Trade Desk (TTD) closed at $272.35, marking a -0.42% move from the previous day. This change lagged the S&P 500’s 0% on the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.18%.
Prior to today’s trading, shares of the digital-advertising platform operator had gained 3.15% over the past month. This has lagged the Computer and Technology sector’s gain of 4.19% and the S&P 500’s gain of 3.37% in that time.
TTD will be looking to display strength as it nears its next earnings release. On that day, TTD is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 9.17%. Meanwhile, our latest consensus estimate is calling for revenue of $213.31 million, up 32.93% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.38 per share and revenue of $658.43 million, which would represent changes of +25.19% and +37.95%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TTD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TTD is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, TTD is currently trading at a Forward P/E ratio of 80.96. Its industry sports an average Forward P/E of 32.6, so we one might conclude that TTD is trading at a premium comparatively.
It is also worth noting that TTD currently has a PEG ratio of 2.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Internet – Services industry currently had an average PEG ratio of 2.94 as of yesterday’s close.
The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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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