The Trade Desk (TTD - Free Report) closed the most recent trading day at $207.21, moving +0.18% from the previous trading session. This change lagged the S&P 500's 0.22% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.6%.
Prior to today's trading, shares of the digital-advertising platform operator had gained 8.16% over the past month. This has outpaced the Computer and Technology sector's gain of 4.32% and the S&P 500's gain of 2.39% in that time.
Investors will be hoping for strength from TTD as it approaches its next earnings release. The company is expected to report EPS of $0.26, down 23.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $117 million, up 36.58% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.57 per share and revenue of $640.48 million, which would represent changes of -4.81% and +34.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TTD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.1% higher within the past month. TTD is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, TTD is holding a Forward P/E ratio of 80.43. This valuation marks a premium compared to its industry's average Forward P/E of 25.33.
Also, we should mention that TTD has a PEG ratio of 4.39. 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. TTD's industry had an average PEG ratio of 2.78 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 159, which puts it in the bottom 38% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.