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

In the latest trading session, The Trade Desk (TTD) closed at $716.10, marking a -0.95% move from the previous day. This change lagged the S&P 500's daily loss of 0.41%.

Coming into today, shares of the digital-advertising platform operator had lost 5.98% in the past month. In that same time, the Computer and Technology sector gained 9.72%, while the S&P 500 gained 5.07%.

Wall Street will be looking for positivity from TTD as it approaches its next earnings report date. In that report, analysts expect TTD to post earnings of $0.82 per share. This would mark a year-over-year decline of 8.89%. Our most recent consensus estimate is calling for quarterly revenue of $216.45 million, up 34.72% from the year-ago period.

TTD's full-year Zacks Consensus Estimates are calling for earnings of $5.72 per share and revenue of $1.13 billion. These results would represent year-over-year changes of -16.5% and +35.48%, respectively.

Any recent changes to analyst estimates for TTD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. TTD is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note TTD's current valuation metrics, including its Forward P/E ratio of 126.31. Its industry sports an average Forward P/E of 32.15, so we one might conclude that TTD is trading at a premium comparatively.

It is also worth noting that TTD currently has a PEG ratio of 5.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.83 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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