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

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The Trade Desk (TTD - Free Report) closed at $61.49 in the latest trading session, marking a -1.13% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 4.87%.

Heading into today, shares of the digital-advertising platform operator had gained 2.88% over the past month, outpacing the Computer and Technology sector's gain of 0.98% and lagging the S&P 500's gain of 3.31% 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 $0.13 per share. This would mark a year-over-year decline of 38.1%. 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.

Any recent changes to analyst estimates for The Trade Desk should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. The Trade Desk is currently a Zacks Rank #3 (Hold).

Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 53.53. This represents a premium compared to its industry's average Forward P/E of 23.06.

Meanwhile, TTD's PEG ratio is currently 2.23. 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 1.47 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 149, which puts it in the bottom 41% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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