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

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The Trade Desk (TTD - Free Report) closed the most recent trading day at $288.71, moving +0.41% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.67%.

Heading into today, shares of the digital-advertising platform operator had gained 0.81% over the past month, lagging the Computer and Technology sector's gain of 5.51% and the S&P 500's gain of 3.24% in that time.

TTD will be looking to display strength as it nears its next earnings release, which is expected to be February 27, 2020. On that day, TTD is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 9.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $213.31 million, up 32.93% from the year-ago period.

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.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.15% lower within the past month. TTD currently has a Zacks Rank of #4 (Sell).

In terms of valuation, TTD is currently trading at a Forward P/E ratio of 75.33. This valuation marks a premium compared to its industry's average Forward P/E of 27.43.

Investors should also note that TTD has a PEG ratio of 2.74 right now. 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. TTD's industry had an average PEG ratio of 2.15 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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