The Trade Desk (TTD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, The Trade Desk (TTD) closed at $52.47, marking a -0.29% move from the previous day. This change lagged the S&P 500's daily gain of 2.6%. At the same time, the Dow added 2.83%, and the tech-heavy Nasdaq gained 0.04%.
Heading into today, shares of the digital-advertising platform operator had lost 17.28% over the past month, lagging the Computer and Technology sector's loss of 15.89% and the S&P 500's loss of 12.9% in that time.
The Trade Desk will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.23, up 27.78% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $386.11 million, up 28.24% from the year-ago period.
TTD's full-year Zacks Consensus Estimates are calling for earnings of $1.01 per share and revenue of $1.58 billion. These results would represent year-over-year changes of +10.99% and +32.41%, respectively.
Investors might also notice recent changes to analyst estimates for The Trade Desk. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. The Trade Desk currently has a Zacks Rank of #2 (Buy).
In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 51.89. For comparison, its industry has an average Forward P/E of 19.69, which means The Trade Desk is trading at a premium to the group.
We can also see that TTD currently has a PEG ratio of 2.16. 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. TTD's industry had an average PEG ratio of 1.67 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 47, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.
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