Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, The Trade Desk (TTD - Free Report) closed at $121.98, marking a +0.3% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 0.56%.

Heading into today, shares of the digital-advertising platform operator had gained 11.86% over the past month, outpacing the Computer and Technology sector's gain of 2.83% and the S&P 500's gain of 1.83% in that time.

Investors will be eagerly watching for the performance of The Trade Desk in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 7, 2024. 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, the latest consensus estimate predicts the revenue to be $619.89 million, indicating a 25.67% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.63 per share and a revenue of $2.45 billion, representing changes of +29.37% and +25.86%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. As of now, The Trade Desk holds a Zacks Rank of #3 (Hold).

In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 74.71. This signifies a premium in comparison to the average Forward P/E of 35.36 for its industry.

We can also see that TTD currently has a PEG ratio of 3.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry currently had an average PEG ratio of 2.27 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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