In the latest trading session, The Trade Desk (TTD) closed at $394.78, marking a +0.1% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.57%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.03%.
TTD will be looking to display strength as it nears its next earnings release. In that report, analysts expect TTD to post earnings of $0.36 per share. This would mark a year-over-year decline of 62.11%. Our most recent consensus estimate is calling for quarterly revenue of $133.74 million, down 16.37% from the year-ago period.
TTD's full-year Zacks Consensus Estimates are calling for earnings of $3.30 per share and revenue of $696.28 million. These results would represent year-over-year changes of -10.57% and +5.33%, respectively.
Investors should also note any recent changes to analyst estimates for TTD. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 past month, the Zacks Consensus EPS estimate remained stagnant. TTD is currently a Zacks Rank #2 (Buy).
Investors should also note TTD's current valuation metrics, including its Forward P/E ratio of 119.39. This represents a premium compared to its industry's average Forward P/E of 32.47.
Investors should also note that TTD has a PEG ratio of 4.78 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.71 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 69, putting it in the top 28% 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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