The Trade Desk (TTD - Free Report) closed the most recent trading day at $170, moving +1.53% from the previous trading session. This move outpaced the S&P 500's daily loss of 4.34%. Elsewhere, the Dow lost 4.55%, while the tech-heavy Nasdaq lost 3.79%.
Prior to today's trading, shares of the digital-advertising platform operator had lost 46.24% over the past month. This has lagged the Computer and Technology sector's loss of 27.47% and the S&P 500's loss of 28.78% in that time.
TTD will be looking to display strength as it nears its next earnings release. On that day, TTD is projected to report earnings of $0.51 per share, which would represent year-over-year growth of 4.08%. Meanwhile, our latest consensus estimate is calling for revenue of $169.66 million, up 40.23% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.73 per share and revenue of $862.16 million. These totals would mark changes of +1.08% and +30.42%, respectively, from last 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.46% lower. TTD is currently a Zacks Rank #4 (Sell).
Looking at its valuation, TTD is holding a Forward P/E ratio of 44.89. For comparison, its industry has an average Forward P/E of 23.09, which means TTD is trading at a premium to the group.
Meanwhile, TTD's PEG ratio is currently 1.8. 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 1.62 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 86, which puts it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.