The Trade Desk (TTD) closed at $463 in the latest trading session, marking a +0.11% move from the prior day. This move outpaced the S&P 500's daily loss of 0.56%. Meanwhile, the Dow lost 1.39%, and the Nasdaq, a tech-heavy index, added 0.53%.
Prior to today's trading, shares of the digital-advertising platform operator had gained 25.5% over the past month. This has outpaced the Computer and Technology sector's gain of 5.97% and the S&P 500's loss of 1.79% in that time.
Wall Street will be looking for positivity from TTD as it approaches its next earnings report date. The company is expected to report EPS of $0.30, down 68.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $132.99 million, down 16.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.12 per share and revenue of $689.75 million. These totals would mark changes of -15.45% and +4.34%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for TTD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 10.92% lower. TTD is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, TTD is currently trading at a Forward P/E ratio of 148.23. For comparison, its industry has an average Forward P/E of 34.58, which means TTD is trading at a premium to the group.
It is also worth noting that TTD currently has a PEG ratio of 5.93. 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 2.87 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 82, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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