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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 $686.07, marking a -1.35% move from the previous day. This move lagged the S&P 500's daily loss of 0.68%.

Heading into today, shares of the digital-advertising platform operator had lost 1.96% over the past month, lagging the Computer and Technology sector's gain of 9.54% and the S&P 500's gain of 6.62% in that time.

TTD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.82, down 8.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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.

Investors might also notice recent changes to analyst estimates for TTD. These revisions help to show the ever-changing nature of 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.

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. TTD currently has a Zacks Rank of #3 (Hold).

In terms of valuation, TTD is currently trading at a Forward P/E ratio of 125.59. This represents a premium compared to its industry's average Forward P/E of 31.94.

We can also see that TTD currently has a PEG ratio of 5.02. 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 1.88 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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