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

In the latest trading session, The Trade Desk (TTD) closed at $775.30, marking a -1.29% move from the previous day. This change lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 0.12%.

Coming into today, shares of the digital-advertising platform operator had lost 16.42% in the past month. In that same time, the Computer and Technology sector gained 4.43%, while the S&P 500 gained 4.12%.

Wall Street will be looking for positivity from TTD as it approaches its next earnings report date. The company is expected to report EPS of $1.90, up 27.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $290.41 million, up 34.49% from the year-ago period.

Any recent changes to analyst estimates for TTD should also be noted by investors. 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. 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.

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. Within the past 30 days, our consensus EPS projection has moved 5.43% higher. TTD is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TTD has a Forward P/E ratio of 154.55 right now. Its industry sports an average Forward P/E of 31.15, so we one might conclude that TTD is trading at a premium comparatively.

We can also see that TTD currently has a PEG ratio of 6.18. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 124, putting it in the top 49% 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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