Back to top

Image: Bigstock

The Trade Desk (TTD) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

The Trade Desk (TTD - Free Report) closed the most recent trading day at $61.52, moving +1.1% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq lost 2.19%.

Coming into today, shares of the digital-advertising platform operator had gained 14.06% in the past month. In that same time, the Computer and Technology sector gained 7.7%, while the S&P 500 gained 3.13%.

Wall Street will be looking for positivity from The Trade Desk as it approaches its next earnings report date. In that report, analysts expect The Trade Desk to post earnings of $0.14 per share. This would mark a year-over-year decline of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $363.74 million, up 15.35% from the year-ago period.

TTD's full-year Zacks Consensus Estimates are calling for earnings of $1.16 per share and revenue of $1.88 billion. These results would represent year-over-year changes of +11.54% and +19.24%, respectively.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 52.65. For comparison, its industry has an average Forward P/E of 23.37, which means The Trade Desk is trading at a premium to the group.

Also, we should mention that TTD has a PEG ratio of 2.19. 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 1.47 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 75, which puts it in the top 30% 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.

Be sure to follow all of these stock-moving metrics, and many more, on 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