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

·3 min read

The Trade Desk (TTD) closed the most recent trading day at $43.62, moving +1.21% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the digital-advertising platform operator had lost 6.91% over the past month. This has lagged the Computer and Technology sector's gain of 1.72% and the S&P 500's gain of 2.02% in that time.

Wall Street will be looking for positivity from The Trade Desk as it approaches its next earnings report date. The company is expected to report EPS of $0.21, up 16.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $365.22 million, up 30.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.01 per share and revenue of $1.58 billion, which would represent changes of +10.99% and +32.4%, respectively, from the prior year.

Any recent changes to analyst estimates for The Trade Desk should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% lower. The Trade Desk is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that The Trade Desk has a Forward P/E ratio of 42.67 right now. This valuation marks a premium compared to its industry's average Forward P/E of 19.59.

Investors should also note that TTD has a PEG ratio of 1.78 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.51 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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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