The Trade Desk (TTD) closed at $286.64 in the latest trading session, marking a +0.5% move from the prior day. The stock lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 0.81%.
Heading into today, shares of the digital-advertising platform operator had gained 13.86% over the past month, outpacing the Computer and Technology sector's gain of 6.02% and the S&P 500's gain of 3.55% in that time.
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 $1.19 per share, which would represent year-over-year growth of 9.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $213.31 million, up 32.93% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TTD is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that TTD has a Forward P/E ratio of 75.65 right now. Its industry sports an average Forward P/E of 28.21, so we one might conclude that TTD is trading at a premium comparatively.
We can also see that TTD currently has a PEG ratio of 2.75. 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. The Internet - Services was holding an average PEG ratio of 2.58 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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.
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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