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The Trade Desk (TTD) Gains But Lags Market: What You Should Know

In the latest trading session, The Trade Desk (TTD) closed at $60.91, marking a +1.36% move from the previous day. This change lagged the S&P 500's 1.44% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.

Prior to today's trading, shares of the digital-advertising platform operator had gained 6.56% over the past month. This has lagged the Computer and Technology sector's gain of 8.79% and outpaced the S&P 500's gain of 2.28% in that time.

Wall Street will be looking for positivity from The Trade Desk as it approaches its next earnings report date. In that report, analysts expect The Trade Desk to post earnings of $0.14 per share. This would mark a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $363.74 million, up 15.35% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.16 per share and revenue of $1.88 billion, which would represent changes of +11.54% and +19.24%, respectively, from the prior year.

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Any recent changes to analyst estimates for The Trade Desk should also be noted by investors. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 51.99. Its industry sports an average Forward P/E of 25.94, so we one might conclude that The Trade Desk is trading at a premium comparatively.

It is also worth noting that TTD currently has a PEG ratio of 2.17. 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 Internet - Services was holding an average PEG ratio of 1.4 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 76, putting it in the top 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.

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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The Trade Desk (TTD) : Free Stock Analysis Report

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Zacks Investment Research