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The Trade Desk (TTD) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, The Trade Desk (TTD - Free Report) closed at $76.84, marking a -0.88% move from the previous day. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Coming into today, shares of the digital-advertising platform operator had gained 20.86% in the past month. In that same time, the Computer and Technology sector gained 11.52%, while the S&P 500 gained 6.1%.
Wall Street will be looking for positivity from The Trade Desk as it approaches its next earnings report date. On that day, The Trade Desk is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 30%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $453.83 million, up 20.39% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $1.93 billion, which would represent changes of +20.19% and +22.03%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. The Trade Desk is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note The Trade Desk's current valuation metrics, including its Forward P/E ratio of 62.18. This valuation marks a premium compared to its industry's average Forward P/E of 24.18.
Meanwhile, TTD's PEG ratio is currently 2.59. 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 1.59 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 70, which puts it in the top 28% 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.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.
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The Trade Desk (TTD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, The Trade Desk (TTD - Free Report) closed at $76.84, marking a -0.88% move from the previous day. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Coming into today, shares of the digital-advertising platform operator had gained 20.86% in the past month. In that same time, the Computer and Technology sector gained 11.52%, while the S&P 500 gained 6.1%.
Wall Street will be looking for positivity from The Trade Desk as it approaches its next earnings report date. On that day, The Trade Desk is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 30%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $453.83 million, up 20.39% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $1.93 billion, which would represent changes of +20.19% and +22.03%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. The Trade Desk is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note The Trade Desk's current valuation metrics, including its Forward P/E ratio of 62.18. This valuation marks a premium compared to its industry's average Forward P/E of 24.18.
Meanwhile, TTD's PEG ratio is currently 2.59. 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 1.59 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 70, which puts it in the top 28% 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.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.