The Trade Desk (TTD) closed at $46.56 in the latest trading session, marking a -1.5% move from the prior day. This move lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the digital-advertising platform operator had lost 4.49% in the past month. In that same time, the Computer and Technology sector lost 13.84%, while the S&P 500 gained 5.55%.
The Trade Desk will be looking to display strength as it nears its next earnings release. On that day, The Trade Desk is projected to report earnings of $0.21 per share, which would represent year-over-year growth of 16.67%. Meanwhile, our latest consensus estimate is calling for revenue of $365.22 million, up 30.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.01 per share and revenue of $1.58 billion. These totals would mark changes of +10.99% and +32.4%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% lower. The Trade Desk is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that The Trade Desk has a Forward P/E ratio of 46.8 right now. Its industry sports an average Forward P/E of 20.11, so we one might conclude that The Trade Desk is trading at a premium comparatively.
It is also worth noting that TTD currently has a PEG ratio of 1.95. 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. TTD's industry had an average PEG ratio of 1.66 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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