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

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The Trade Desk (TTD) closed at $43.34 in the latest trading session, marking a -1.83% move from the prior day. This move lagged the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.02%.

Coming into today, shares of the digital-advertising platform operator had lost 15.18% in the past month. In that same time, the Computer and Technology sector lost 7.26%, while the S&P 500 lost 7.99%.

Investors will be hoping for strength from The Trade Desk as it approaches its next earnings release. The company is expected to report EPS of $0.21, up 16.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $365.22 million, up 30.45% from the prior-year quarter.

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 +32.43%, respectively, from last year.

It is also important to note the 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. The Trade Desk is currently a Zacks Rank #3 (Hold).

In terms of valuation, The Trade Desk is currently trading at a Forward P/E ratio of 43.63. For comparison, its industry has an average Forward P/E of 20.71, 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 1.82. 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 currently had an average PEG ratio of 1.47 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 17% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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