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The Trade Desk (TTD) Increases Despite Market Slip: Here's What You Need to Know

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The Trade Desk (TTD - Free Report) closed at $66.86 in the latest trading session, marking a +0.97% move from the prior day. This move outpaced the S&P 500's daily loss of 0.48%. Elsewhere, the Dow lost 1.12%, while the tech-heavy Nasdaq added 0.38%.

Heading into today, shares of the digital-advertising platform operator had lost 14.76% over the past month, lagging the Computer and Technology sector's loss of 3.16% and the S&P 500's loss of 2.65% in that time.

Market participants will be closely following the financial results of The Trade Desk in its upcoming release. The company plans to announce its earnings on November 9, 2023. The company's upcoming EPS is projected at $0.29, signifying a 11.54% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $486.72 million, indicating a 23.29% increase compared to the same quarter of the previous year.

TTD's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $1.95 billion. These results would represent year-over-year changes of +20.19% and +23.35%, respectively.

Any recent changes to analyst estimates for The Trade Desk should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, The Trade Desk possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, The Trade Desk is currently exchanging hands at a Forward P/E ratio of 53.16. For comparison, its industry has an average Forward P/E of 21.58, which means The Trade Desk is trading at a premium to the group.

Also, we should mention that TTD has a PEG ratio of 2.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.77.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.

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


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