Back to top

Image: Bigstock

Here's Why The Trade Desk (TTD) Fell More Than Broader Market

Read MoreHide Full Article

The Trade Desk (TTD - Free Report) closed the latest trading day at $73.64, indicating a -0.57% change from the previous session's end. This change lagged the S&P 500's 0.17% loss on the day. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.27%.

The the stock of digital-advertising platform operator has fallen by 3% in the past month, lagging the Computer and Technology sector's loss of 2.16% and overreaching the S&P 500's loss of 3.95%.

The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. The company is scheduled to release its earnings on November 9, 2023. In that report, analysts expect The Trade Desk to post earnings of $0.29 per share. This would mark year-over-year growth of 11.54%. Our most recent consensus estimate is calling for quarterly revenue of $486.72 million, up 23.29% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $1.95 billion, which would represent changes of +20.19% and +23.35%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for The Trade Desk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. The Trade Desk currently has a Zacks Rank of #3 (Hold).

With respect to valuation, The Trade Desk is currently being traded at a Forward P/E ratio of 59.45. This denotes a premium relative to the industry's average Forward P/E of 24.71.

We can additionally observe that TTD currently boasts a PEG ratio of 2.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services industry had an average PEG ratio of 1.81 as trading concluded yesterday.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 41% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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