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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 $84.16, marking a -0.28% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 1.37%.

Heading into today, shares of the digital-advertising platform operator had gained 9.9% over the past month, outpacing the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 3.43% in that time.

Wall Street will be looking for positivity from The Trade Desk as it approaches its next earnings report date. In that report, analysts expect The Trade Desk to post earnings of $0.26 per share. This would mark year-over-year growth of 30%. Meanwhile, our latest consensus estimate is calling for revenue of $455.21 million, up 20.76% from the prior-year quarter.

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 +22.23%, respectively, from the prior year.

Any recent changes to analyst estimates for The Trade Desk should also be noted by investors. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. The Trade Desk is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, The Trade Desk is holding a Forward P/E ratio of 67.7. Its industry sports an average Forward P/E of 31, so we one might conclude that The Trade Desk is trading at a premium comparatively.

We can also see that TTD currently has a PEG ratio of 2.82. 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 was holding an average PEG ratio of 1.84 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 77, which puts it in the top 31% 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.

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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