The Trade Desk (TTD) closed at $75.47 in the latest trading session, marking a -0.38% move from the prior day. This change lagged the S&P 500’s daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 0.42%.
Heading into today, shares of the digital-advertising platform operator had lost 13.03% over the past month, lagging the Computer and Technology sector’s loss of 5.11% and the S&P 500’s gain of 0.22% in that time.
Wall Street will be looking for positivity from The Trade Desk as it approaches its next earnings report date. In that report, analysts expect The Trade Desk to post earnings of $0.29 per share. This would mark a year-over-year decline of 21.62%. Our most recent consensus estimate is calling for quarterly revenue of $389.88 million, up 21.87% from the year-ago period.
Investors might also notice recent changes to analyst estimates for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 1.67% higher. The Trade Desk currently has a Zacks Rank of #2 (Buy).
Investors should also note The Trade Desk’s current valuation metrics, including its Forward P/E ratio of 79.12. This valuation marks a premium compared to its industry’s average Forward P/E of 24.33.
We can also see that TTD currently has a PEG ratio of 3.3. 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. Internet – Services stocks are, on average, holding a PEG ratio of 2.87 based on yesterday’s closing prices.
The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 19% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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