The Trade Desk (TTD - Free Report) closed at $605 in the latest trading session, marking a +0.83% move from the prior day. This move outpaced the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the digital-advertising platform operator had gained 39.94% over the past month. This has outpaced the Computer and Technology sector's gain of 4.31% and the S&P 500's gain of 2.55% in that time.
Wall Street will be looking for positivity from TTD as it approaches its next earnings report date. In that report, analysts expect TTD to post earnings of $0.48 per share. This would mark a year-over-year decline of 36%. Meanwhile, our latest consensus estimate is calling for revenue of $180.55 million, up 9.96% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.17 per share and revenue of $732.40 million. These totals would mark changes of -14.09% and +10.79%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for TTD. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. TTD currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TTD currently has a Forward P/E ratio of 189.38. For comparison, its industry has an average Forward P/E of 38.64, which means TTD is trading at a premium to the group.
Meanwhile, TTD's PEG ratio is currently 7.58. 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 was holding an average PEG ratio of 2.14 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.