Back to top

Image: Bigstock

The Trade Desk (TTD) Stock Moves -1.02%: What You Should Know

Read MoreHide Full Article

The Trade Desk (TTD - Free Report) closed at $61.17 in the latest trading session, marking a -1.02% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.37%.

Heading into today, shares of the digital-advertising platform operator had lost 0.61% over the past month, outpacing the Computer and Technology sector's loss of 4.49% and the S&P 500's loss of 3.51% in that time.

The Trade Desk will be looking to display strength as it nears its next earnings release. In that report, analysts expect The Trade Desk to post earnings of $0.23 per share. This would mark year-over-year growth of 27.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $386.11 million, up 28.24% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.01 per share and revenue of $1.58 billion, which would represent changes of +10.99% and +32.41%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. 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 60.95. This valuation marks a premium compared to its industry's average Forward P/E of 20.

Meanwhile, TTD's PEG ratio is currently 2.54. 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. The Internet - Services industry currently had an average PEG ratio of 1.73 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 54, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Trade Desk (TTD) - free report >>

Published in