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The Trade Desk (TTD) Stock Sinks As Market Gains: What You Should Know

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The Trade Desk (TTD - Free Report) closed at $207 in the latest trading session, marking a -0.59% move from the prior day. This change lagged the S&P 500's 0.5% gain on the day. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 0.76%.

Heading into today, shares of the digital-advertising platform operator had gained 35.72% over the past month, outpacing the Computer and Technology sector's gain of 3.93% and the S&P 500's gain of 2.53% in that time.

Investors will be hoping for strength from TTD as it approaches its next earnings release. On that day, TTD is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 23.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $117 million, up 36.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.57 per share and revenue of $640.92 million. These totals would mark changes of -4.81% and +34.28%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for TTD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, the Zacks Consensus EPS estimate has moved 13.21% lower. TTD is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, TTD currently has a Forward P/E ratio of 80.97. This represents a premium compared to its industry's average Forward P/E of 25.17.

It is also worth noting that TTD currently has a PEG ratio of 4.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.78 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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.

To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.


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