The Trade Desk (TTD) Dips More Than Broader Markets: What You Should Know

In the latest trading session, The Trade Desk (TTD) closed at $59.75, marking a -1.73% move from the previous day. This change lagged the S&P 500's 1.51% loss on the day. Meanwhile, the Dow lost 1.71%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Prior to today's trading, shares of the digital-advertising platform operator had lost 1.76% over the past month. This has was narrower than the Computer and Technology sector's loss of 11.76% and the S&P 500's loss of 9.52% in that time.

Wall Street will be looking for positivity from The Trade Desk as it approaches its next earnings report date. 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.01 per share and revenue of $1.58 billion. These totals would mark changes of +10.99% and +32.41%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that The Trade Desk has a Forward P/E ratio of 59.96 right now. For comparison, its industry has an average Forward P/E of 19.38, 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 2.5. 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 was holding an average PEG ratio of 1.59 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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