The Trade Desk (TTD) Gains As Market Dips: What You Should Know
The latest trading session saw The Trade Desk (TTD) ending at $64.50, denoting a +1.16% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.56%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.59%.
The the stock of digital-advertising platform operator has fallen by 17.89% in the past month, lagging the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 1.2%.
The investment community will be closely monitoring the performance of The Trade Desk in its forthcoming earnings report. The company's upcoming EPS is projected at $0.42, signifying a 10.53% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $582.19 million, indicating a 18.64% growth compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for The Trade Desk. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. The Trade Desk is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, The Trade Desk currently has a Forward P/E ratio of 44.15. Its industry sports an average Forward P/E of 23.76, so one might conclude that The Trade Desk is trading at a premium comparatively.
It's also important to note that TTD currently trades at a PEG ratio of 1.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.84.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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The Trade Desk (TTD) : Free Stock Analysis Report
