Back to top

Image: Bigstock

Why the Market Dipped But The Trade Desk (TTD) Gained Today

Read MoreHide Full Article

The Trade Desk (TTD - Free Report) closed the latest trading day at $86.68, indicating a +0.99% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.04%. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.03%.

The digital-advertising platform operator's shares have seen an increase of 5.2% over the last month, surpassing the Computer and Technology sector's gain of 4.26% and the S&P 500's gain of 2.57%.

The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. The company is predicted to post an EPS of $0.22, indicating a 4.35% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $479.63 million, showing a 25.3% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.49 per share and a revenue of $2.39 billion, signifying shifts of +18.25% and +22.94%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for The Trade Desk. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. The Trade Desk is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, The Trade Desk is holding a Forward P/E ratio of 57.8. This expresses a premium compared to the average Forward P/E of 23.51 of its industry.

Investors should also note that TTD has a PEG ratio of 2.51 right now. 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. The average PEG ratio for the Internet - Services industry stood at 1.82 at the close of the market yesterday.

The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 23% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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