The Trade Desk (TTD) Surpasses Market Returns: Some Facts Worth Knowing
In the latest market close, The Trade Desk (TTD) reached $70.18, with a +1.14% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.29% for the day. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.43%.
Heading into today, shares of the digital-advertising platform operator had lost 5.5% over the past month, lagging the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 2.08% in that time.
The investment community will be paying close attention to the earnings performance of The Trade Desk in its upcoming release. The company is forecasted to report an EPS of $0.42, showcasing a 10.53% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $582.19 million, up 18.64% from the year-ago period.
Investors might also notice recent changes to analyst estimates for The Trade Desk. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 is currently a Zacks Rank #3 (Hold).
In the context of valuation, The Trade Desk is at present trading with a Forward P/E ratio of 48.04. This represents a premium compared to its industry's average Forward P/E of 25.98.
Investors should also note that TTD has a PEG ratio of 2 right now. 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 average PEG ratio for the Internet - Services industry stood at 2.32 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 41% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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The Trade Desk (TTD) : Free Stock Analysis Report
