The Trade Desk (TTD) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest market close, The Trade Desk (TTD) reached $69.32, with a -1.8% movement compared to the previous day. This change lagged the S&P 500's 0.8% loss on the day. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.18%.
The digital-advertising platform operator's shares have seen an increase of 3.31% over the last month, surpassing the Computer and Technology sector's gain of 2.11% and falling behind the S&P 500's gain of 3.4%.
Market participants will be closely following the financial results of The Trade Desk in its upcoming release. The company's upcoming EPS is projected at $0.42, signifying a 10.53% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $581.7 million, up 18.54% from the year-ago period.
Investors might also notice recent changes to analyst estimates for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, The Trade Desk possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, The Trade Desk is currently exchanging hands at a Forward P/E ratio of 48.88. This denotes a premium relative to the industry's average Forward P/E of 24.03.
Investors should also note that TTD has a PEG ratio of 2.04 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services industry had an average PEG ratio of 2.04 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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The Trade Desk (TTD) : Free Stock Analysis Report
