In the latest trading session, The Trade Desk (TTD - Free Report) closed at $244.94, marking a -0.79% move from the previous day. This change lagged the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.52%.
Heading into today, shares of the digital-advertising platform operator had gained 22.19% over the past month, outpacing the Computer and Technology sector's gain of 1.74% and the S&P 500's gain of 3.12% in that time.
TTD will be looking to display strength as it nears its next earnings release. In that report, analysts expect TTD to post earnings of $0.68 per share. This would mark year-over-year growth of 13.33%. Our most recent consensus estimate is calling for quarterly revenue of $155.09 million, up 38.06% from the year-ago period.
TTD's full-year Zacks Consensus Estimates are calling for earnings of $2.93 per share and revenue of $649.96 million. These results would represent year-over-year changes of +8.52% and +36.18%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TTD is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, TTD currently has a Forward P/E ratio of 84.34. This valuation marks a premium compared to its industry's average Forward P/E of 27.11.
Investors should also note that TTD has a PEG ratio of 4.22 right now. 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 industry currently had an average PEG ratio of 2.92 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 63, which puts it in the top 25% 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.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.