In the latest trading session, The Trade Desk (TTD - Free Report) closed at $418.64, marking a -1.98% move from the previous day. This change lagged the S&P 500's 0.05% gain on the day. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Coming into today, shares of the digital-advertising platform operator had lost 9.48% in the past month. In that same time, the Computer and Technology sector gained 0.29%, while the S&P 500 lost 0.52%.
Investors will be hoping for strength from TTD as it approaches its next earnings release. The company is expected to report EPS of $0.48, down 36% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $180.66 million, up 10.02% from the year-ago period.
TTD's full-year Zacks Consensus Estimates are calling for earnings of $3.17 per share and revenue of $731.88 million. These results would represent year-over-year changes of -14.09% and +10.71%, respectively.
It is also important to note the recent changes to analyst estimates for TTD. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TTD is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, TTD is currently trading at a Forward P/E ratio of 134.81. This represents a premium compared to its industry's average Forward P/E of 37.06.
Also, we should mention that TTD has a PEG ratio of 5.39. 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. The Internet - Services industry currently had an average PEG ratio of 2.11 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 122, which puts it in the top 49% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.