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Strength Seen in The Trade Desk (TTD): Can Its 8.9% Jump Turn into More Strength?

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The Trade Desk (TTD - Free Report) shares soared 8.9% in the last trading session to close at $82.69. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.6% gain over the past four weeks.

The upswing in share price can be attributed to TTD's expanding clientele and robust portfolio.

This digital-advertising platform operator is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of +30%. Revenues are expected to be $453.83 million, up 20.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For The Trade Desk, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TTD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

The Trade Desk belongs to the Zacks Internet - Services industry. Another stock from the same industry, Eventbrite (EB - Free Report) , closed the last trading session 4.6% higher at $9.88. Over the past month, EB has returned 22.3%.

For Eventbrite, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.15. This represents a change of +25% from what the company reported a year ago. Eventbrite currently has a Zacks Rank of #3 (Hold).


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