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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 $52.62 in the latest trading session, marking a +0.23% move from the prior day. This move outpaced the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.22%.

Coming into today, shares of the digital-advertising platform operator had lost 17.78% in the past month. In that same time, the Computer and Technology sector lost 14.71%, while the S&P 500 lost 11.67%.

The Trade Desk will be looking to display strength as it nears its next earnings release. On that day, The Trade Desk is projected to report earnings of $0.23 per share, which would represent year-over-year growth of 27.78%. Meanwhile, our latest consensus estimate is calling for revenue of $386.11 million, up 28.24% 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 +32.41%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for The Trade Desk. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. The Trade Desk is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 51.78. This represents a premium compared to its industry's average Forward P/E of 19.69.

It is also worth noting that TTD currently has a PEG ratio of 2.16. 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. TTD's industry had an average PEG ratio of 1.66 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 53, which puts it in the top 22% 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.

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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