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The Trade Desk (TTD) Exceeds Market Returns: Some Facts to Consider
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The Trade Desk (TTD - Free Report) ended the recent trading session at $113, demonstrating a +1.38% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.9%. Meanwhile, the Dow experienced a rise of 0.81%, and the technology-dominated Nasdaq saw an increase of 1.22%.
The digital-advertising platform operator's stock has climbed by 7.65% in the past month, exceeding the Computer and Technology sector's gain of 5.76% and the S&P 500's gain of 3.15%.
The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.40, reflecting a 21.21% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $619.89 million, indicating a 25.67% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.63 per share and a revenue of $2.45 billion, indicating changes of +29.37% and +25.75%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, The Trade Desk possesses a Zacks Rank of #3 (Hold).
In terms of valuation, The Trade Desk is presently being traded at a Forward P/E ratio of 68.51. For comparison, its industry has an average Forward P/E of 28.54, which means The Trade Desk is trading at a premium to the group.
Meanwhile, TTD's PEG ratio is currently 2.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TTD's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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The Trade Desk (TTD) Exceeds Market Returns: Some Facts to Consider
The Trade Desk (TTD - Free Report) ended the recent trading session at $113, demonstrating a +1.38% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.9%. Meanwhile, the Dow experienced a rise of 0.81%, and the technology-dominated Nasdaq saw an increase of 1.22%.
The digital-advertising platform operator's stock has climbed by 7.65% in the past month, exceeding the Computer and Technology sector's gain of 5.76% and the S&P 500's gain of 3.15%.
The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.40, reflecting a 21.21% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $619.89 million, indicating a 25.67% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.63 per share and a revenue of $2.45 billion, indicating changes of +29.37% and +25.75%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, The Trade Desk possesses a Zacks Rank of #3 (Hold).
In terms of valuation, The Trade Desk is presently being traded at a Forward P/E ratio of 68.51. For comparison, its industry has an average Forward P/E of 28.54, which means The Trade Desk is trading at a premium to the group.
Meanwhile, TTD's PEG ratio is currently 2.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TTD's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.