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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 the most recent trading day at $67.73, moving -1.84% from the previous trading session. This change lagged the S&P 500's 1.1% loss on the day. At the same time, the Dow lost 0.89%, and the tech-heavy Nasdaq gained 0.03%.

Coming into today, shares of the digital-advertising platform operator had lost 26.2% in the past month. In that same time, the Computer and Technology sector lost 5.94%, while the S&P 500 lost 1.81%.

The Trade Desk will be looking to display strength as it nears its next earnings release. On that day, The Trade Desk is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 21.62%. Our most recent consensus estimate is calling for quarterly revenue of $389.88 million, up 21.87% from the year-ago period.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.67% higher. The Trade Desk currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that The Trade Desk has a Forward P/E ratio of 72.06 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.8.

Also, we should mention that TTD has a PEG ratio of 3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TTD's industry had an average PEG ratio of 2.7 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 178, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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