The Trade Desk (TTD) ended the recent trading session at $118.68, demonstrating a -0.22% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.51%. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Heading into today, shares of the digital-advertising platform operator had gained 1.03% over the past month, outpacing the Computer and Technology sector's gain of 0.79% and lagging the S&P 500's gain of 2.87% in that time.
Analysts and investors alike will be keeping a close eye on the performance of The Trade Desk in its upcoming earnings disclosure. The company's earnings report is set to go public on February 12, 2025. The company is forecasted to report an EPS of $0.58, showcasing a 41.46% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $758.05 million, indicating a 25.13% growth compared to the corresponding quarter of the prior 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% decrease. At present, The Trade Desk boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that The Trade Desk has a Forward P/E ratio of 59.41 right now. For comparison, its industry has an average Forward P/E of 24.17, which means The Trade Desk is trading at a premium to the group.
One should further note that TTD currently holds a PEG ratio of 2.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.8 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 72, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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