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

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The Trade Desk (TTD - Free Report) closed the most recent trading day at $435.75, moving +1.63% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.12%. At the same time, the Dow lost 0.88%, and the tech-heavy Nasdaq lost 1.07%.

Heading into today, shares of the digital-advertising platform operator had lost 8.82% over the past month, lagging the Computer and Technology sector's loss of 1.17% and the S&P 500's loss of 0.59% in that time.

Investors will be hoping for strength from TTD as it approaches its next earnings release. On that day, TTD is projected to report earnings of $0.48 per share, which would represent a year-over-year decline of 36%. Meanwhile, our latest consensus estimate is calling for revenue of $180.55 million, up 9.96% from the prior-year quarter.

TTD's full-year Zacks Consensus Estimates are calling for earnings of $3.17 per share and revenue of $732.40 million. These results would represent year-over-year changes of -14.09% and +10.79%, respectively.

It is also important to note the recent changes to analyst estimates for TTD. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 currently has a Zacks Rank of #3 (Hold).

In terms of valuation, TTD is currently trading at a Forward P/E ratio of 135.33. This valuation marks a premium compared to its industry's average Forward P/E of 38.35.

It is also worth noting that TTD currently has a PEG ratio of 5.41. 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. TTD's industry had an average PEG ratio of 2.04 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 186, putting it in the bottom 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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