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The Trade Desk (TTD) Stock Falls Amid Market Uptick: What Investors Need to Know

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The latest trading session saw The Trade Desk (TTD - Free Report) ending at $109.36, denoting a -1.23% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.6%.

Shares of the digital-advertising platform operator have appreciated by 8.36% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71%.

The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. On that day, The Trade Desk is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 21.21%. Meanwhile, our latest consensus estimate is calling for revenue of $619.89 million, up 25.67% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.63 per share and a revenue of $2.45 billion, signifying shifts of +29.37% and +25.7%, 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Currently, The Trade Desk is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 68.05. This signifies a premium in comparison to the average Forward P/E of 30.63 for its industry.

We can also see that TTD currently has a PEG ratio of 2.81. 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 1.9.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 137, this industry ranks in the bottom 46% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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