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The Trade Desk (TTD) Outpaces Stock Market Gains: What You Should Know
The Trade Desk (TTD - Free Report) closed at $436.37 in the latest trading session, marking a +1% move from the prior day. This change outpaced the S&P 500's 0.91% gain on the day. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.59%.
Coming into today, shares of the digital-advertising platform operator had gained 16.13% in the past month. In that same time, the Computer and Technology sector gained 8.52%, while the S&P 500 gained 5.26%.
TTD will be looking to display strength as it nears its next earnings release. In that report, analysts expect TTD to post earnings of $0.31 per share. This would mark a year-over-year decline of 67.37%. Our most recent consensus estimate is calling for quarterly revenue of $136.19 million, down 14.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.14 per share and revenue of $696.59 million. These totals would mark changes of -14.91% and +5.38%, respectively, from last year.
Any recent changes to analyst estimates for TTD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 10.3% lower. TTD is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, TTD is currently trading at a Forward P/E ratio of 137.45. For comparison, its industry has an average Forward P/E of 34.51, which means TTD is trading at a premium to the group.
We can also see that TTD currently has a PEG ratio of 5.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2.76 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 156, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.