The Trade Desk TTD shares rallied 6.6% in the last trading session to close at $80.4. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.4% gain over the past four weeks.
The Trade Desk is benefiting from higher adoption of Connected TV (CTV) amid the convergence of the Internet and television programming. This particular growth driver is fast becoming the focus of the company’s growth strategy.
This digital-advertising platform operator is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +7.7%. Revenues are expected to be $684.33 million, up 17.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For The Trade Desk, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TTD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
The Trade Desk is a member of the Zacks Internet - Services industry. One other stock in the same industry, Shopify SHOP, finished the last trading session 1.5% lower at $115.05. SHOP has returned 7.7% over the past month.
Shopify's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.28. Compared to the company's year-ago EPS, this represents a change of +7.7%. Shopify currently boasts a Zacks Rank of #1 (Strong Buy).
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The Trade Desk (TTD): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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