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The Trade Desk (TTD) Gains But Lags Market: What You Should Know

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The Trade Desk (TTD - Free Report) closed at $129.43 in the latest trading session, marking a +0.02% move from the prior day. The stock lagged the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.

Heading into today, shares of the digital-advertising platform operator had gained 18.58% over the past month, outpacing the Computer and Technology sector's loss of 1.56% and the S&P 500's gain of 0.89% 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. In that report, analysts expect TTD to post earnings of $0.79 per share. This would mark year-over-year growth of 46.3%. Meanwhile, our latest consensus estimate is calling for revenue of $148.18 million, up 44.36% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.39 per share and revenue of $464.99 million. These totals would mark changes of +49.38% and +50.87%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for TTD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 has moved 8.23% higher within the past month. TTD is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, TTD currently has a Forward P/E ratio of 54.14. Its industry sports an average Forward P/E of 27.15, so we one might conclude that TTD is trading at a premium comparatively.

Investors should also note that TTD has a PEG ratio of 2.17 right now. 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. TTD's industry had an average PEG ratio of 2.17 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 31% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




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