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The Trade Desk (TTD) Increases Yet Falls Behind Market: What Investors Need to Know

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The most recent trading session ended with The Trade Desk (TTD - Free Report) standing at $121.52, reflecting a +0.09% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.

The the stock of digital-advertising platform operator has fallen by 9.38% in the past month, lagging the Computer and Technology sector's loss of 0.39% and the S&P 500's loss of 2.7%.

The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 41.46% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $758.05 million, indicating a 25.13% growth compared to the corresponding quarter of the prior year.

It is also important to note the recent changes to analyst estimates for The Trade Desk. Recent revisions tend to reflect the latest 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.27% increase. As of now, The Trade Desk holds a Zacks Rank of #2 (Buy).

In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 60.67. This valuation marks a premium compared to its industry's average Forward P/E of 21.96.

Investors should also note that TTD has a PEG ratio of 2.4 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services industry currently had an average PEG ratio of 1.57 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons 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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