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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 $234.21 in the latest trading session, marking a +0.19% move from the prior day. The stock lagged the S&P 500's daily gain of 0.29%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.22%.

Prior to today's trading, shares of the digital-advertising platform operator had gained 18.41% over the past month. This has outpaced the Computer and Technology sector's gain of 7.66% and the S&P 500's gain of 7.86% in that time.

Wall Street will be looking for positivity from TTD as it approaches its next earnings report date. The company is expected to report EPS of $0.68, up 13.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $155.09 million, up 38.06% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.93 per share and revenue of $649.96 million. These totals would mark changes of +8.52% and +36.18%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TTD. 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 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TTD is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that TTD has a Forward P/E ratio of 79.86 right now. This valuation marks a premium compared to its industry's average Forward P/E of 29.67.

Investors should also note that TTD has a PEG ratio of 3.99 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.83 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 92, which puts it in the top 36% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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