The Trade Desk (TTD) Dips More Than Broader Markets: What You Should Know
The Trade Desk (TTD) closed the most recent trading day at $134.56, moving -0.83% from the previous trading session. This change lagged the S&P 500's 0.15% loss on the day. At the same time, the Dow added 0.21%, and the tech-heavy Nasdaq lost 0.81%.
Coming into today, shares of the digital-advertising platform operator had gained 16.91% in the past month. In that same time, the Computer and Technology sector gained 5.57%, while the S&P 500 gained 6.55%.
TTD will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2019. The company is expected to report EPS of $0.79, up 46.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $148.18 million, up 44.36% from the prior-year quarter.
Any recent changes to analyst estimates for TTD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained stagnant within the past month. TTD currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that TTD has a Forward P/E ratio of 49.42 right now. This valuation marks a premium compared to its industry's average Forward P/E of 29.03.
Also, we should mention that TTD has a PEG ratio of 1.98. 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. The Internet - Services industry currently had an average PEG ratio of 2.47 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 82, putting it in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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