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The Trade Desk (TTD) Stock Moves -0.39%: What You Should Know

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The Trade Desk (TTD - Free Report) closed the most recent trading day at $70.72, moving -0.39% from the previous trading session. This change was narrower than the S&P 500's 0.69% loss on the day.

Coming into today, shares of the digital-advertising platform operator had lost 2.45% in the past month. In that same time, the Computer and Technology sector lost 5.77%, while the S&P 500 lost 2.58%.

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 $0.16 per share, which would represent year-over-year growth of 23.08%. Meanwhile, our latest consensus estimate is calling for revenue of $283.6 million, up 31.23% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.72 per share and revenue of $1.17 billion, which would represent changes of +4.35% and +40.36%, respectively, from the prior year.

Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that TTD has a Forward P/E ratio of 98.61 right now. This valuation marks a premium compared to its industry's average Forward P/E of 27.48.

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 3.97 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 173, putting it in the bottom 32% 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.

To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.


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