TTD Stock – The Trade Desk (TTD) Outpaces Stock Market Gains: What You Should Know
The Trade Desk (TTD) closed at $740.85 in the latest trading session, marking a +1.04% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.7%. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq gained 1.23%.
Coming into today, shares of the digital-advertising platform operator had lost 13.38% in the past month. In that same time, the Computer and Technology sector lost 6.07%, while the S&P 500 gained 0.18%.
TTD will be looking to display strength as it nears its next earnings release. On that day, TTD is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 8.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $216.45 million, up 34.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.72 per share and revenue of $1.13 billion. These totals would mark changes of -16.5% and +35.48%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for TTD. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 12.44% higher. TTD is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note TTD’s current valuation metrics, including its Forward P/E ratio of 128.09. Its industry sports an average Forward P/E of 29.48, 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 5.12. 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. Internet – Services stocks are, on average, holding a PEG ratio of 2.56 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 153, putting it in the bottom 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.