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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 the most recent trading day at $45.63, moving +0.22% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.03%.

Prior to today's trading, shares of the digital-advertising platform operator had lost 13.29% over the past month. This has lagged the Computer and Technology sector's loss of 5.66% and the S&P 500's loss of 6.03% in that time.

Investors will be hoping for strength from The Trade Desk as it approaches its next earnings release. In that report, analysts expect The Trade Desk to post earnings of $0.21 per share. This would mark year-over-year growth of 16.67%. Meanwhile, our latest consensus estimate is calling for revenue of $365.22 million, up 30.45% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.01 per share and revenue of $1.58 billion. These totals would mark changes of +10.99% and +32.43%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. The Trade Desk is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 44.99. This represents a premium compared to its industry's average Forward P/E of 21.15.

We can also see that TTD currently has a PEG ratio of 1.87. 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 1.77 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 20% 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.

To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.


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