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

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Zacks Equity Research
·2 min read
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In the latest trading session, The Trade Desk (TTD) closed at $839.15, marking a +0.93% move from the previous day. This change outpaced the S&P 500's 0.1% gain on the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.02%.

Investors will be hoping for strength from TTD as it approaches its next earnings release. In that report, analysts expect TTD to post earnings of $1.90 per share. This would mark year-over-year growth of 27.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $291.25 million, up 34.87% from the year-ago period.

Any recent changes to analyst estimates for TTD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 5.43% higher within the past month. TTD is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, TTD is currently trading at a Forward P/E ratio of 156.08. This represents a premium compared to its industry's average Forward P/E of 39.53.

Also, we should mention that TTD has a PEG ratio of 6.24. 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 2.69 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 124, putting it in the top 49% 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.

To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research