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The Trade Desk (TTD) Dips More Than Broader Markets: What You Should Know
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The Trade Desk (TTD - Free Report) closed the most recent trading day at $44.83, moving -1.12% from the previous trading session. This change lagged the S&P 500's 0.25% loss on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 5.91%.
Prior to today's trading, shares of the digital-advertising platform operator had lost 12.66% over the past month. This has lagged the Computer and Technology sector's loss of 3.63% and the S&P 500's loss of 2.59% in that time.
The Trade Desk will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.37, down 11.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $492.81 million, up 24.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.04 per share and revenue of $1.58 billion. These totals would mark changes of +14.29% and +32.04%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 has moved 4.76% lower. The Trade Desk is currently a Zacks Rank #3 (Hold).
In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 43.81. For comparison, its industry has an average Forward P/E of 19.74, which means The Trade Desk is trading at a premium to the group.
Investors should also note that TTD has a PEG ratio of 1.83 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% 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.
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The Trade Desk (TTD) Dips More Than Broader Markets: What You Should Know
The Trade Desk (TTD - Free Report) closed the most recent trading day at $44.83, moving -1.12% from the previous trading session. This change lagged the S&P 500's 0.25% loss on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 5.91%.
Prior to today's trading, shares of the digital-advertising platform operator had lost 12.66% over the past month. This has lagged the Computer and Technology sector's loss of 3.63% and the S&P 500's loss of 2.59% in that time.
The Trade Desk will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.37, down 11.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $492.81 million, up 24.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.04 per share and revenue of $1.58 billion. These totals would mark changes of +14.29% and +32.04%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 has moved 4.76% lower. The Trade Desk is currently a Zacks Rank #3 (Hold).
In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 43.81. For comparison, its industry has an average Forward P/E of 19.74, which means The Trade Desk is trading at a premium to the group.
Investors should also note that TTD has a PEG ratio of 1.83 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% 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.