The Trade Desk (TTD) closed at $14.33 in the latest trading session, marking a +2.54% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.86%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.96%.
Shares of the digital-advertising platform operator have depreciated by 4.05% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.56%, and the S&P 500's loss of 1.96%.
The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. The company is forecasted to report an EPS of $0.26, showcasing a 42.22% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $650.67 million, reflecting a 12% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.22 per share and revenue of $2.86 billion, indicating changes of -31.07% and -1.36%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 16.71% lower. The Trade Desk presently features a Zacks Rank of #4 (Sell).
In terms of valuation, The Trade Desk is presently being traded at a Forward P/E ratio of 11.42. Its industry sports an average Forward P/E of 15.96, so one might conclude that The Trade Desk is trading at a discount comparatively.
Also, we should mention that TTD has a PEG ratio of 0.65. 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. The Internet - Services industry had an average PEG ratio of 1.48 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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The Trade Desk (TTD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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