The Trade Desk (TTD) Increases Yet Falls Behind Market: What Investors Need to Know

Company Performance - The Trade Desk (TTD) closed at $121.52, with a slight increase of +0.09% from the previous trading day, underperforming the S&P 500 which gained 0.16% [1] - Over the past month, TTD's stock has decreased by 9.38%, compared to a loss of 0.39% in the Computer and Technology sector and a 2.7% loss in the S&P 500 [1] Earnings Forecast - The upcoming earnings report for The Trade Desk is anticipated to show earnings per share (EPS) of$ 0.58, representing a significant increase of 41.46% year-over-year [2] - Revenue is projected to reach $758.05 million, indicating a growth of 25.13% compared to the same quarter last year [2] Analyst Estimates - Recent changes in analyst estimates for The Trade Desk suggest positive near-term business trends, which are interpreted as favorable for the company's outlook [3] - The Zacks Rank system, which incorporates these estimate changes, currently rates The Trade Desk as 2 (Buy) [5] Valuation Metrics - The Trade Desk has a Forward P/E ratio of 60.67, which is significantly higher than the industry average of 21.96 [6] - The company's PEG ratio stands at 2.4, compared to the Internet - Services industry's average PEG ratio of 1.57 [6] Industry Context - The Internet - Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 64, placing it in the top 26% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]