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The Trade Desk (TTD) Stock Drops Despite Market Gains: Important Facts to Note

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The Trade Desk (TTD - Free Report) closed the most recent trading day at $51.66, moving -3.64% from the previous trading session. This change lagged the S&P 500's 0.23% gain on the day. Elsewhere, the Dow saw an upswing of 0.34%, while the tech-heavy Nasdaq appreciated by 0.8%.

Coming into today, shares of the digital-advertising platform operator had gained 8% in the past month. In that same time, the Computer and Technology sector gained 6.04%, while the S&P 500 gained 3.57%.

The upcoming earnings release of The Trade Desk will be of great interest to investors. The company's earnings report is expected on November 6, 2025. The company is predicted to post an EPS of $0.44, indicating a 7.32% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $718.16 million, indicating a 14.35% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.76 per share and revenue of $2.86 billion, indicating changes of +6.02% and +16.92%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for The Trade Desk. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. The Trade Desk presently features a Zacks Rank of #4 (Sell).

Looking at valuation, The Trade Desk is presently trading at a Forward P/E ratio of 30.41. For comparison, its industry has an average Forward P/E of 26.71, which means The Trade Desk is trading at a premium to the group.

It's also important to note that TTD currently trades at a PEG ratio of 1.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.82.

The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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