Is Most-Watched Stock The Trade Desk (TTD) Worth Betting on Now?

Core Viewpoint - The Trade Desk (TTD) has shown strong stock performance recently, outperforming both the S&P 500 and its industry peers, raising questions about its future trajectory [2]. Earnings Estimates - For the current quarter, The Trade Desk is expected to report earnings of $0.58 per share, reflecting a year-over-year increase of +41.5% [5]. - The consensus earnings estimate for the current fiscal year stands at $1.65, indicating a year-over-year change of +31%, with a slight increase of +1.6% over the last 30 days [5]. - For the next fiscal year, the consensus earnings estimate is $2, representing a +21.4% change from the previous year, with a recent increase of +2.4% [6]. Revenue Growth - The consensus sales estimate for the current quarter is $758.05 million, which indicates a year-over-year growth of +25.1% [9]. - The revenue estimates for the current and next fiscal years are $2.46 billion and $2.98 billion, reflecting changes of +26.5% and +21.1%, respectively [9]. Recent Performance - The Trade Desk reported revenues of $628.02 million in the last quarter, marking a year-over-year increase of +27.3% [10]. - The company achieved an EPS of $0.41, up from $0.33 a year ago, and surpassed consensus revenue and EPS estimates in the last four quarters [11]. Valuation - The Trade Desk is graded F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [15]. - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [13][14]. Conclusion - The Trade Desk's Zacks Rank of 3 suggests it may perform in line with the broader market in the near term, despite the market buzz surrounding it [16].