Yahoo Finance Why The Trade Desk (TTD) Outpaced the Stock Market Today
The latest trading session saw The Trade Desk (TTD) ending at $98.13, denoting a +0.43% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.09%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.3%.
Prior to today's trading, shares of the digital-advertising platform operator had gained 2.37% over the past month. This has lagged the Computer and Technology sector's gain of 6.18% and the S&P 500's gain of 3.38% in that time.
Analysts and investors alike will be keeping a close eye on the performance of The Trade Desk in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.36, signifying a 28.57% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $577.55 million, indicating a 24.41% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.57 per share and a revenue of $2.42 billion, representing changes of +24.6% and +24.49%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The Trade Desk. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.9% increase. As of now, The Trade Desk holds a Zacks Rank of #3 (Hold).
Looking at its valuation, The Trade Desk is holding a Forward P/E ratio of 62.41. This valuation marks a premium compared to its industry's average Forward P/E of 22.81.
We can also see that TTD currently has a PEG ratio of 2.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 2.15.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 36% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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
