The Zacks Computer and Technology sector has tumbled in 2022 amid a hawkish pivot from the Fed, down more than 35% and lagging the S&P 500 by a notable margin.
A company residing in the realm, The Trade Desk TTD, is on deck to unveil Q3 earnings on November 9th before the market open.
The Trade Desk is the fastest-growing demand-side platform, offering agencies and advertisers best-in-class technology to manage digital campaigns.
Currently, the company sports a favorable Zacks Rank #2 (Buy) paired with an overall VGM Score of a D.
How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, it’s been a challenging road for TTD shares, down more than 50% and widely lagging behind the S&P 500.
Image Source: Zacks Investment Research
Over the last three months, the story has remained the same; TTD shares have experienced adverse price action, down more than 20% and again lagging behind the general market.
Image Source: Zacks Investment Research
Further, the company’s shares trade at a 13.4X forward price-to-sales ratio, undoubtedly on the higher end of the spectrum and reflecting a sizable 431% premium relative to its Zacks sector average.
TTD carries a Value Style Score of an F.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been silent for the quarter to be reported over the last 60 days, with zero earnings estimate revisions coming in. Still, the Zacks Consensus EPS Estimate of $0.24 indicates a Y/Y uptick in earnings of more than 30%.
Image Source: Zacks Investment Research
TTD’s top-line is in solid shape also; the Zacks Consensus Sales Estimate of $386 million suggests an improvement of more than 25% from year-ago quarterly sales of $301 million.
Quarterly Performance
TTD has consistently posted strong bottom-line results, exceeding the Zacks Consensus EPS Estimate in nine of its last ten quarters. However, the one miss during the period came in its latest print, when The Trade Desk fell short of earnings expectations by 4.8%.
Revenue results have been robust; TTD has exceeded sales expectations in nine consecutive quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
TTD shares have underperformed the S&P 500 across several timeframes in 2022, indicating that sellers have been in control.
The company’s forward price-to-sales ratio is on the higher end of the spectrum, well above its Zacks sector average.
Analysts have been silent for the quarter to be reported, with estimates indicating Y/Y upticks in both revenue and earnings.
The company has consistently exceeded quarterly estimates, although it did fall short of earnings expectations in its latest print.
Heading into the release, The Trade Desk TTD carries a Zacks Rank #2 (Buy) paired with an Earnings ESP Score of 2.1%.
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