The Trade Desk (TTD) Registers a Bigger Fall Than the Market: Important Facts to Note

Group 1 - The Trade Desk (TTD) closed at $80.21, down 1.51% from the previous day, underperforming the S&P 500 which lost 0.01% [1] - Over the past month, TTD shares gained 18.61%, outperforming the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37% [1] Group 2 - The upcoming earnings release is expected to show EPS of $0.42, a 7.69% increase from the prior-year quarter, with quarterly revenue projected at $684.33 million, up 17.07% year-over-year [2] - For the full year, earnings are projected at $1.77 per share and revenue at $2.85 billion, reflecting increases of 6.63% and 16.63% respectively from the previous year [2] Group 3 - Changes in analyst estimates for TTD are important as they reflect short-term business trends and can indicate analysts' favorable outlook on the company's health and profitability [3] - The Zacks Rank system, which incorporates estimate changes, has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [4][5] Group 4 - TTD is currently trading at a Forward P/E ratio of 46.01, significantly higher than the industry average of 19.76, indicating a premium valuation [6] - TTD's PEG ratio stands at 2, compared to the industry average PEG ratio of 1.55, suggesting a higher valuation relative to projected earnings growth [6] Group 5 - The Internet - Services industry, which includes TTD, has a Zacks Industry Rank of 151, placing it in the bottom 39% of over 250 industries, indicating weaker performance compared to higher-ranked industries [7]