In the latest trading session, The Trade Desk (TTD) closed at $98.13, adjusting +0.43% from the previous day’s closing price. The stock’s movement outpaced the S&P 500’s daily gain of 0.09%. Elsewhere in the market, the Dow rose 0.09%, while the tech-heavy Nasdaq added 0.3%.
Prior to today’s trading, shares of the digital advertising platform operator had gained 2.37% over the past month, lagging the Computer and Technology sector’s gain of 6.18% and the S&P 500’s gain of 3.38% in that time period.
Analysts and investors will be keeping a close eye on The Trade Desk’s performance during its upcoming earnings disclosure. The company’s upcoming EPS is projected to be $0.36, up 28.57% from the same period last year. Meanwhile, the latest consensus estimate is calling for revenue of $577.55 million, up 24.41% from the same period last year.
Looking at the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $1.57 per share and revenue of $2.42 billion, which would represent changes of +24.6% and +24.49%, respectively, from the prior year.
Additionally, investors should also pay attention to any recent revisions to analyst forecasts for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive changes in forecasts mean that analysts are optimistic about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with future stock price movements, and to take advantage of this, we have created the Zacks Rank, a proprietary model which incorporates these estimate changes and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive, outside-audited track record of outperforming expectations, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, the Zacks Consensus EPS estimate has moved 2.9% higher. Currently, The Trade Desk has a Zacks Rank #3 (Hold).
Looking at valuation, The Trade Desk has a Forward P/E ratio of 62.41, which places it at a premium compared to its industry’s average Forward P/E ratio of 22.81.
We can also see that TTD currently has a PEG ratio of 2.71. The PEG ratio is similar to the commonly used P/E ratio, but this metric also incorporates a company’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio in the Internet Services industry was 2.15.
The Internet – Services industry is a part of the Computer and Technology sector. Its current Zacks Industry Rank of 162 puts this industry in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by determining the average Zacks Rank of the individual stocks that make up the groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To monitor all of these indicators and more impacting stocks in the coming trading sessions, remember to utilize Zacks.com.
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