In the latest trading session, The Trade Desk (TTD) closed at $23.56, marking a +1.55% move from the previous day. This change outpaced the S&P 500’s 1.05% gain on the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.64%.
The stock of digital-advertising platform operator has risen by 3.85% in the past month, lagging the Computer and Technology sector’s gain of 12.58% and the S&P 500’s gain of 8.59%.
The investment community will be paying close attention to the earnings performance of The Trade Desk in its upcoming release. The company is expected to report EPS of $0.32, down 3.03% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $679.26 million, up 10.27% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.06 per share and a revenue of $3.27 billion, representing changes of +16.38% and +12.75%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, there’s been a 0.11% fall in the Zacks Consensus EPS estimate. The Trade Desk is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, The Trade Desk is at present trading with a Forward P/E ratio of 11.25. For comparison, its industry has an average Forward P/E of 14.58, which means The Trade Desk is trading at a discount to the group.
One should further note that TTD currently holds a PEG ratio of 0.57. 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. By the end of yesterday’s trading, the Internet – Services industry had an average PEG ratio of 2.05.
The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 32% of all 250+ industries.
