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The Trade Desk (TTD) Gains But Lags Market: What You Should Know
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In the latest trading session, The Trade Desk (TTD - Free Report) closed at $56.93, marking a +0.8% move from the previous day. This move lagged the S&P 500's daily gain of 2.37%. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Prior to today's trading, shares of the digital-advertising platform operator had lost 4.66% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.85% and the S&P 500's loss of 4.82% in that time.
The Trade Desk will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.24, up 33.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $385.83 million, up 28.14% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.02 per share and revenue of $1.58 billion. These totals would mark changes of +12.09% and +32.33%, respectively, from last year.
Any recent changes to analyst estimates for The Trade Desk should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. The Trade Desk is currently a Zacks Rank #2 (Buy).
Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 55.46. For comparison, its industry has an average Forward P/E of 19.77, which means The Trade Desk is trading at a premium to the group.
Meanwhile, TTD's PEG ratio is currently 2.31. 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 was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Trade Desk (TTD) Gains But Lags Market: What You Should Know
In the latest trading session, The Trade Desk (TTD - Free Report) closed at $56.93, marking a +0.8% move from the previous day. This move lagged the S&P 500's daily gain of 2.37%. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Prior to today's trading, shares of the digital-advertising platform operator had lost 4.66% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.85% and the S&P 500's loss of 4.82% in that time.
The Trade Desk will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.24, up 33.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $385.83 million, up 28.14% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.02 per share and revenue of $1.58 billion. These totals would mark changes of +12.09% and +32.33%, respectively, from last year.
Any recent changes to analyst estimates for The Trade Desk should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. The Trade Desk is currently a Zacks Rank #2 (Buy).
Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 55.46. For comparison, its industry has an average Forward P/E of 19.77, which means The Trade Desk is trading at a premium to the group.
Meanwhile, TTD's PEG ratio is currently 2.31. 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 was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.