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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 $61.63, moving +0.1% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.71%. Meanwhile, the Dow lost 1.7%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today's trading, shares of the digital-advertising platform operator had lost 2.87% over the past month. This has was narrower than the Computer and Technology sector's loss of 12.12% and the S&P 500's loss of 8.68% in that time.

Investors will be hoping for strength from The Trade Desk as it approaches its next earnings release. In that report, analysts expect The Trade Desk to post earnings of $0.23 per share. This would mark year-over-year growth of 27.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $386.11 million, up 28.24% from the year-ago period.

TTD's full-year Zacks Consensus Estimates are calling for earnings of $1.01 per share and revenue of $1.58 billion. These results would represent year-over-year changes of +10.99% and +32.41%, respectively.

Investors should also note any recent changes to analyst estimates for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. The Trade Desk is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 60.72. This valuation marks a premium compared to its industry's average Forward P/E of 20.9.

We can also see that TTD currently has a PEG ratio of 2.53. 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. The Internet - Services was holding an average PEG ratio of 1.65 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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