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

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The Trade Desk (TTD - Free Report) closed the most recent trading day at $183.99, moving +0.22% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.79%. At the same time, the Dow lost 1.86%, and the tech-heavy Nasdaq lost 1.56%.

Prior to today's trading, shares of the digital-advertising platform operator had lost 21.87% over the past month. This has lagged the Computer and Technology sector's gain of 1.04% and the S&P 500's gain of 0.72% in that time.

Wall Street will be looking for positivity from TTD as it approaches its next earnings report date. On that day, TTD is projected to report earnings of $0.67 per share, which would represent year-over-year growth of 3.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $164.26 million, up 38.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.21 per share and revenue of $655.61 million, which would represent changes of +18.89% and +37.36%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TTD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. TTD currently has a Zacks Rank of #3 (Hold).

In terms of valuation, TTD is currently trading at a Forward P/E ratio of 57.19. For comparison, its industry has an average Forward P/E of 25.86, which means TTD is trading at a premium to the group.

It is also worth noting that TTD currently has a PEG ratio of 2.08. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.48 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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