The Trade Desk (TTD - Free Report) closed at $200.36 in the latest trading session, marking a +0.24% move from the prior day. This change outpaced the S&P 500's 0% on the day. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 0.21%.
Prior to today's trading, shares of the digital-advertising platform operator had lost 2.59% over the past month. This has lagged the Computer and Technology sector's gain of 7.39% and the S&P 500's gain of 5.49% in that time.
Wall Street will be looking for positivity from TTD as it approaches its next earnings report date. The company is expected to report EPS of $0.25, down 26.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $116.98 million, up 36.54% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.56 per share and revenue of $640.48 million, which would represent changes of -5.19% and +34.19%, respectively, from the prior year.
Investors should also note any 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TTD is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that TTD has a Forward P/E ratio of 77.99 right now. For comparison, its industry has an average Forward P/E of 25.47, which means TTD is trading at a premium to the group.
Investors should also note that TTD has a PEG ratio of 4.25 right now. 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 3.37 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.