The Trade Desk (TTD - Free Report) closed the most recent trading day at $148.90, moving +1.86% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.07%. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.13%.
Heading into today, shares of the digital-advertising platform operator had gained 12.73% over the past month, outpacing the Computer and Technology sector's gain of 7.08% and the S&P 500's gain of 5.36% in that time.
Wall Street will be looking for positivity from TTD as it approaches its next earnings report date. This is expected to be February 21, 2019. The company is expected to report EPS of $0.79, up 46.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $148.18 million, up 44.36% from the prior-year quarter.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. TTD is currently a Zacks Rank #3 (Hold).
Digging into valuation, TTD currently has a Forward P/E ratio of 53.24. Its industry sports an average Forward P/E of 26.88, so we one might conclude that TTD is trading at a premium comparatively.
We can also see that TTD currently has a PEG ratio of 2.13. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.