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The Trade Desk (TTD) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, The Trade Desk (TTD - Free Report) closed at $251.09, marking a -0.08% move from the previous day. This move lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%.

Coming into today, shares of the digital-advertising platform operator had gained 26.34% in the past month. In that same time, the Computer and Technology sector gained 0.95%, while the S&P 500 gained 2.47%.

TTD will be looking to display strength as it nears its next earnings release. In that report, analysts expect TTD to post earnings of $0.68 per share. This would mark year-over-year growth of 13.33%. Our most recent consensus estimate is calling for quarterly revenue of $155.09 million, up 38.06% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.93 per share and revenue of $649.96 million. These totals would mark changes of +8.52% and +36.18%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 #1 (Strong Buy).

In terms of valuation, TTD is currently trading at a Forward P/E ratio of 85.85. This valuation marks a premium compared to its industry's average Forward P/E of 26.45.

Meanwhile, TTD's PEG ratio is currently 4.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry currently had an average PEG ratio of 2.65 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.


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