Wall Street Analysts See The Trade Desk (TTD) as a Buy: Should You Invest?

Core Viewpoint - The Trade Desk (TTD) has an average brokerage recommendation (ABR) of 1.62, indicating a general suggestion to buy, but reliance solely on this metric may not be advisable due to the inherent biases in brokerage recommendations [2][5][10]. Brokerage Recommendations - The ABR for TTD is calculated from 37 brokerage firms, with 24 recommendations classified as Strong Buy and 3 as Buy, representing 64.9% and 8.1% of total recommendations respectively [2]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings, often issuing five Strong Buy recommendations for every Strong Sell [6][10]. Zacks Rank Comparison - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, with a strong correlation to near-term stock price movements, contrasting with the ABR which is based solely on brokerage recommendations [8][11]. - The Zacks Rank for TTD is currently 4 (Sell), indicating a negative outlook based on a 7.1% decline in the earnings consensus estimate to $1.77 over the past month [13][14]. Investment Implications - The disparity between the ABR suggesting a Buy and the Zacks Rank indicating a Sell highlights the need for investors to critically evaluate brokerage recommendations and consider additional metrics like Zacks Rank for informed decision-making [5][14].