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

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The Trade Desk (TTD - Free Report) closed the most recent trading day at $70.01, moving -1.52% from the previous trading session. This change lagged the S&P 500's daily gain of 0.94%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, lost 0.55%.

Prior to today's trading, shares of the digital-advertising platform operator had lost 16.72% over the past month. This has lagged the Computer and Technology sector's loss of 7.56% and the S&P 500's loss of 4.63% in that time.

The Trade Desk will be looking to display strength as it nears its next earnings release. In that report, analysts expect The Trade Desk to post earnings of $0.29 per share. This would mark a year-over-year decline of 21.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $389.88 million, up 21.87% from the year-ago period.

Investors should also note any recent changes to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 3.33% higher. The Trade Desk is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 74.44. This valuation marks a premium compared to its industry's average Forward P/E of 25.41.

It is also worth noting that TTD currently has a PEG ratio of 3.1. 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 2.52 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 211, which puts it in the bottom 18% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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