The Trade Desk (TTD) closed at $127.30 in the latest trading session, marking a -1.83% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.21%.
Heading into today, shares of the digital-advertising platform operator had lost 6.71% over the past month, lagging the Computer and Technology sector's loss of 1.41% and the S&P 500's loss of 1.4% in that time.
Wall Street will be looking for positivity from TTD as it approaches its nex t earnings report date. This is expected to be February 28, 2019. The company is expected to report EPS of $0.79, up 46.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $148.18 million, up 44.36% from the prior-year quarter.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. TTD is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, TTD is holding a Forward P/E ratio of 47.23. This valuation marks a premium compared to its industry's average Forward P/E of 26.81.
Also, we should mention that TTD has a PEG ratio of 1.89. 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 2.18 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 160, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc.