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The Trade Desk (TTD) Declines More Than Market: Some Information for Investors
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In the latest close session, The Trade Desk (TTD - Free Report) was down 1.98% at $12.35. This move lagged the S&P 500's daily loss of 0.77%. On the other hand, the Dow registered a loss of 0.67%, and the technology-centric Nasdaq decreased by 0.92%.
Shares of the digital-advertising platform operator have depreciated by 7.15% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.26%, and the S&P 500's gain of 0.96%.
The upcoming earnings release of The Trade Desk will be of great interest to investors. The company is predicted to post an EPS of $0.27, indicating a 40% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $650.67 million, indicating a 12% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.22 per share and a revenue of $2.84 billion, demonstrating changes of -31.07% and -1.98%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.29% lower within the past month. The Trade Desk presently features a Zacks Rank of #4 (Sell).
With respect to valuation, The Trade Desk is currently being traded at a Forward P/E ratio of 10.37. For comparison, its industry has an average Forward P/E of 15.58, which means The Trade Desk is trading at a discount to the group.
It's also important to note that TTD currently trades at a PEG ratio of 0.59. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.62.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 27% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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The Trade Desk (TTD) Declines More Than Market: Some Information for Investors
In the latest close session, The Trade Desk (TTD - Free Report) was down 1.98% at $12.35. This move lagged the S&P 500's daily loss of 0.77%. On the other hand, the Dow registered a loss of 0.67%, and the technology-centric Nasdaq decreased by 0.92%.
Shares of the digital-advertising platform operator have depreciated by 7.15% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.26%, and the S&P 500's gain of 0.96%.
The upcoming earnings release of The Trade Desk will be of great interest to investors. The company is predicted to post an EPS of $0.27, indicating a 40% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $650.67 million, indicating a 12% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.22 per share and a revenue of $2.84 billion, demonstrating changes of -31.07% and -1.98%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.29% lower within the past month. The Trade Desk presently features a Zacks Rank of #4 (Sell).
With respect to valuation, The Trade Desk is currently being traded at a Forward P/E ratio of 10.37. For comparison, its industry has an average Forward P/E of 15.58, which means The Trade Desk is trading at a discount to the group.
It's also important to note that TTD currently trades at a PEG ratio of 0.59. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.62.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 27% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.