The Trade Desk (TTD) closed the most recent trading day at $306.57, moving +0.58% from the previous trading session. This change outpaced the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the digital-advertising platform operator had gained 7.02% over the past month. This has outpaced the Computer and Technology sector's gain of 5.86% and the S&P 500's gain of 3.63% in that time.
TTD will be looking to display strength as it nears its next earnings release, which is expected to be February 27, 2020. 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.
Investors might also notice 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. 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.
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 #4 (Sell) right now.
In terms of valuation, TTD is currently trading at a Forward P/E ratio of 79.86. Its industry sports an average Forward P/E of 29.3, so we one might conclude that TTD is trading at a premium comparatively.
Also, we should mention that TTD has a PEG ratio of 2.9. 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. The Internet - Services was holding an average PEG ratio of 2.36 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 98, which puts it in the top 39% 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.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research