Back to top

Image: Bigstock

The Trade Desk (TTD) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

In the latest trading session, The Trade Desk (TTD - Free Report) closed at $86.14, marking a +1.34% move from the previous day. This change outpaced the S&P 500's 0.4% gain on the day. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.24%.

The digital-advertising platform operator's shares have seen an increase of 24.96% over the last month, surpassing the Computer and Technology sector's gain of 6.84% and the S&P 500's gain of 4.61%.

Investors will be eagerly watching for the performance of The Trade Desk in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 7, 2025. In that report, analysts expect The Trade Desk to post earnings of $0.42 per share. This would mark year-over-year growth of 7.69%. Meanwhile, the latest consensus estimate predicts the revenue to be $684.33 million, indicating a 17.07% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.78 per share and revenue of $2.85 billion, which would represent changes of +7.23% and +16.75%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The Trade Desk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.94% higher. The Trade Desk is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that The Trade Desk has a Forward P/E ratio of 47.83 right now. This denotes a premium relative to the industry average Forward P/E of 20.54.

Meanwhile, TTD's PEG ratio is currently 2.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.61.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 24% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Published in