The Trade Desk (TTD) closed the most recent trading day at $61.01, moving -1.82% from the previous trading session. This move lagged the S&P 500's daily loss of 1.31%.
Heading into today, shares of the digital-advertising platform operator had gained 14.38% over the past month, outpacing the Computer and Technology sector's gain of 7.7% and the S&P 500's gain of 1.56% in that time.
Wall Street will be looking for positivity from TTD as it approaches its next earnings report date. In that report, analysts expect TTD to post earnings of $0.13 per share. This would mark a year-over-year decline of 85.87%. Our most recent consensus estimate is calling for quarterly revenue of $261.58 million, up 87.7% from the year-ago period.
TTD's full-year Zacks Consensus Estimates are calling for earnings of $0.64 per share and revenue of $1.14 billion. These results would represent year-over-year changes of -90.66% and +36%, respectively.
Any recent changes to analyst estimates for TTD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TTD is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, TTD currently has a Forward P/E ratio of 96.85. For comparison, its industry has an average Forward P/E of 28.52, which means TTD is trading at a premium to the group.
It is also worth noting that TTD currently has a PEG ratio of 3.87. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.06 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% 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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