The Trade Desk (TTD - Free Report) closed at $239.68 in the latest trading session, marking a +0.8% move from the prior day. This move outpaced the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.78%.
Prior to today's trading, shares of the digital-advertising platform operator had gained 0.21% over the past month. This has lagged the Computer and Technology sector's gain of 8% and the S&P 500's gain of 5.97% in that time.
Investors will be hoping for strength from TTD as it approaches its next earnings release. On that day, TTD is projected to report earnings of $0.68 per share, which would represent 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.93 per share and revenue of $649.96 million, which would represent changes of +8.52% and +36.18%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TTD. Recent revisions tend to reflect the latest near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TTD currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note TTD's current valuation metrics, including its Forward P/E ratio of 81.23. This represents a premium compared to its industry's average Forward P/E of 29.57.
It is also worth noting that TTD currently has a PEG ratio of 4.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.82 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 84, putting it in the top 33% 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.