Yahoo Finance Why The Trade Desk (TTD) Outpaced the Stock Market Today
The most recent trading session ended with The Trade Desk (TTD) standing at $84.73, reflecting a +1.67% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 1.02%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 2.03%.
The digital-advertising platform operator's shares have seen a decrease of 4.67% over the last month, surpassing the Computer and Technology sector's loss of 5.32% and falling behind the S&P 500's loss of 3.15%.
Market participants will be closely following the financial results of The Trade Desk in its upcoming release. The company plans to announce its earnings on May 8, 2024. It is anticipated that the company will report an EPS of $0.22, marking a 4.35% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $479.63 million, indicating a 25.3% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.49 per share and revenue of $2.39 billion. These totals would mark changes of +18.25% and +22.94%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for The Trade Desk. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. The Trade Desk is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, The Trade Desk is at present trading with a Forward P/E ratio of 56.12. This indicates a premium in contrast to its industry's Forward P/E of 24.36.
Also, we should mention that TTD has a PEG ratio of 2.44. 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 industry currently had an average PEG ratio of 2.06 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 16% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The Trade Desk (TTD) : Free Stock Analysis Report
