In the latest trading session, The Trade Desk (TTD) closed at $556.48, marking a +0.24% move from the previous day. This move outpaced the S&P 500's daily loss of 0.96%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, lost 2.22%.
Prior to today's trading, shares of the digital-advertising platform operator had gained 19.48% over the past month. This has outpaced the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 4.04% 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 $0.48 per share, which would represent a year-over-year decline of 36%. Meanwhile, our latest consensus estimate is calling for revenue of $180.55 million, up 9.96% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.17 per share and revenue of $732.40 million, which would represent changes of -14.09% and +10.79%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TTD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 currently a Zacks Rank #3 (Hold).
Digging into valuation, TTD currently has a Forward P/E ratio of 175.23. For comparison, its industry has an average Forward P/E of 38.07, which means TTD is trading at a premium to the group.
It is also worth noting that TTD currently has a PEG ratio of 7.01. 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 2.04 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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