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The Trade Desk (TTD) Gains As Market Dips: What You Should Know
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The Trade Desk (TTD - Free Report) closed at $112.06 in the latest trading session, marking a +1.02% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.4%, and the Nasdaq, a tech-heavy index, 0%.
Prior to today's trading, shares of the digital-advertising platform operator had lost 10.45% over the past month. This has lagged the Computer and Technology sector's loss of 5.26% and the S&P 500's loss of 1.27% in that time.
TTD will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2019. On that day, TTD is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $147.20 million, up 43.4% from the year-ago period.
TTD's full-year Zacks Consensus Estimates are calling for earnings of $2.16 per share and revenue of $463.19 million. These results would represent year-over-year changes of +35% and +50.28%, respectively.
Investors might also notice recent changes to analyst estimates for TTD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TTD currently has a Zacks Rank of #2 (Buy).
In terms of valuation, TTD is currently trading at a Forward P/E ratio of 51.29. Its industry sports an average Forward P/E of 28.95, so we one might conclude that TTD is trading at a premium comparatively.
Also, we should mention that TTD has a PEG ratio of 2.8. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 33% 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.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.
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The Trade Desk (TTD) Gains As Market Dips: What You Should Know
The Trade Desk (TTD - Free Report) closed at $112.06 in the latest trading session, marking a +1.02% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.4%, and the Nasdaq, a tech-heavy index, 0%.
Prior to today's trading, shares of the digital-advertising platform operator had lost 10.45% over the past month. This has lagged the Computer and Technology sector's loss of 5.26% and the S&P 500's loss of 1.27% in that time.
TTD will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2019. On that day, TTD is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $147.20 million, up 43.4% from the year-ago period.
TTD's full-year Zacks Consensus Estimates are calling for earnings of $2.16 per share and revenue of $463.19 million. These results would represent year-over-year changes of +35% and +50.28%, respectively.
Investors might also notice recent changes to analyst estimates for TTD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TTD currently has a Zacks Rank of #2 (Buy).
In terms of valuation, TTD is currently trading at a Forward P/E ratio of 51.29. Its industry sports an average Forward P/E of 28.95, so we one might conclude that TTD is trading at a premium comparatively.
Also, we should mention that TTD has a PEG ratio of 2.8. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 33% 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.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.