The Trade Desk (TTD) closed the most recent trading day at $119.96, moving +0.69% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw a decrease of 0.5%.
Prior to today's trading, shares of the digital-advertising platform operator had lost 3.5% over the past month. This has lagged the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 2.52% in that time.
Market participants will be closely following the financial results of The Trade Desk in its upcoming release. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 41.46% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $758.05 million, indicating a 25.13% increase compared to the same quarter of the previous year.
Investors should also note any recent changes to analyst estimates for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% decrease. The Trade Desk is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that The Trade Desk has a Forward P/E ratio of 59.51 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.55.
It is also worth noting that TTD currently has a PEG ratio of 2.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.58.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% of over 250 industries.
The Zacks Industry Rank is ordered 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.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.
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