In the latest trading session, The Trade Desk (TTD) closed at $194.40, marking a -0.09% move from the previous day. This move was narrower than the S&P 500’s daily loss of 0.24%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.58%.
Coming into today, shares of the digital-advertising platform operator had lost 21.66% in the past month. In that same time, the Computer and Technology sector gained 5.16%, while the S&P 500 gained 4.96%.
Investors will be hoping for strength from TTD as it approaches its next earnings release. On that day, TTD is projected to report earnings of $0.67 per share, which would represent year-over-year growth of 3.08%. Meanwhile, our latest consensus estimate is calling for revenue of $164.26 million, up 38.23% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.21 per share and revenue of $655.61 million. These totals would mark changes of +18.89% and +37.36%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for TTD. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TTD is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, TTD currently has a Forward P/E ratio of 60.62. For comparison, its industry has an average Forward P/E of 26.23, which means TTD is trading at a premium to the group.
Investors should also note that TTD has a PEG ratio of 2.2 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. TTD’s industry had an average PEG ratio of 2.46 as of yesterday’s close.
The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 42% 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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