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Here's Why The Trade Desk (TTD) Fell More Than Broader Market
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The Trade Desk (TTD - Free Report) closed at $13.02 in the latest trading session, marking a -1.1% move from the prior day. This change lagged the S&P 500's 0.52% loss on the day. At the same time, the Dow lost 1.24%, and the tech-heavy Nasdaq lost 0.21%.
The digital-advertising platform operator's shares have seen an increase of 4.2% over the last month, surpassing the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.
Market participants will be closely following the financial results of The Trade Desk in its upcoming release. On that day, The Trade Desk is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 42.22%. Simultaneously, our latest consensus estimate expects the revenue to be $650.67 million, showing a 12% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.23 per share and revenue of $2.83 billion, indicating changes of -30.51% and -2.39%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for The Trade Desk. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, there's been a 7% rise in the Zacks Consensus EPS estimate. At present, The Trade Desk boasts a Zacks Rank of #3 (Hold).
Investors should also note The Trade Desk's current valuation metrics, including its Forward P/E ratio of 10.67. This indicates a discount in contrast to its industry's Forward P/E of 14.91.
One should further note that TTD currently holds a PEG ratio of 0.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.63 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Here's Why The Trade Desk (TTD) Fell More Than Broader Market
The Trade Desk (TTD - Free Report) closed at $13.02 in the latest trading session, marking a -1.1% move from the prior day. This change lagged the S&P 500's 0.52% loss on the day. At the same time, the Dow lost 1.24%, and the tech-heavy Nasdaq lost 0.21%.
The digital-advertising platform operator's shares have seen an increase of 4.2% over the last month, surpassing the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.
Market participants will be closely following the financial results of The Trade Desk in its upcoming release. On that day, The Trade Desk is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 42.22%. Simultaneously, our latest consensus estimate expects the revenue to be $650.67 million, showing a 12% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.23 per share and revenue of $2.83 billion, indicating changes of -30.51% and -2.39%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for The Trade Desk. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, there's been a 7% rise in the Zacks Consensus EPS estimate. At present, The Trade Desk boasts a Zacks Rank of #3 (Hold).
Investors should also note The Trade Desk's current valuation metrics, including its Forward P/E ratio of 10.67. This indicates a discount in contrast to its industry's Forward P/E of 14.91.
One should further note that TTD currently holds a PEG ratio of 0.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.63 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.