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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 at $864.61 in the latest trading session, marking a +1.44% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.11%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the digital-advertising platform operator had gained 7.45% in the past month. In that same time, the Computer and Technology sector gained 7.49%, while the S&P 500 gained 2.46%.

TTD will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2021. On that day, TTD is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 27.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $291.25 million, up 34.87% from the year-ago period.

Any recent changes to analyst estimates for TTD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. The Zacks Consensus EPS estimate has moved 3.49% higher within the past month. TTD currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TTD has a Forward P/E ratio of 168.25 right now. For comparison, its industry has an average Forward P/E of 38.39, which means TTD is trading at a premium to the group.

Investors should also note that TTD has a PEG ratio of 6.73 right now. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.96 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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