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The Trade Desk (TTD) Suffers a Larger Drop Than the General Market: Key Insights

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The Trade Desk (TTD - Free Report) closed the latest trading day at $109.51, indicating a -0.57% change from the previous session's end. This change lagged the S&P 500's 0.19% loss on the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, lost 0.36%.

Shares of the digital-advertising platform operator have appreciated by 6.76% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.09% and the S&P 500's gain of 2.06%.

The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.40, reflecting a 21.21% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $619.89 million, reflecting a 25.67% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.63 per share and revenue of $2.45 billion, indicating changes of +29.37% and +25.7%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been no change in the Zacks Consensus EPS estimate. At present, The Trade Desk boasts a Zacks Rank of #3 (Hold).

Looking at valuation, The Trade Desk is presently trading at a Forward P/E ratio of 67.69. Its industry sports an average Forward P/E of 29.44, so one might conclude that The Trade Desk is trading at a premium comparatively.

It is also worth noting that TTD currently has a PEG ratio of 2.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.8.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 135, which puts it in the bottom 47% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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