In the latest trading session, The Trade Desk (TTD - Free Report) closed at $284.80, marking a +0.23% move from the previous day. This move outpaced the S&P 500's daily gain of 0.19%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.08%.
Prior to today's trading, shares of the digital-advertising platform operator had gained 13.65% over the past month. This has outpaced the Computer and Technology sector's gain of 6.59% and the S&P 500's gain of 3.72% 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 $1.19, up 9.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $213.31 million, up 32.93% from the year-ago period.
It is also important to note the recent changes to analyst estimates for TTD. These revisions help to show the ever-changing nature of near-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. 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.
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 has moved 3.15% lower. TTD is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that TTD has a Forward P/E ratio of 74.45 right now. Its industry sports an average Forward P/E of 27.86, so we one might conclude that TTD is trading at a premium comparatively.
Meanwhile, TTD's PEG ratio is currently 2.71. 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. The Internet - Services industry currently had an average PEG ratio of 2.54 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 181, putting it in the bottom 30% 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.