Is The Trade Desk Stock a Buy, Sell or Hold at its P/S of 20.78X?

Zacks12-24 00:34

The Trade Desk TTD shares are trading at a stretched valuation, as suggested by the Value Score of F. In terms of the 12-month Price/Sales (P/S), TTD is currently trading at 20.78X, a premium compared...

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In terms of the 12-month Price/Sales (P/S), TTD is currently trading at 20.78X, a premium compared...</p>\n\n<a href=\"https://finance.yahoo.com/news/trade-desk-stock-buy-sell-163400245.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is The Trade Desk Stock a Buy, Sell or Hold at its P/S of 20.78X?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs The Trade Desk Stock a Buy, Sell or Hold at its P/S of 20.78X?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-24 00:34 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/trade-desk-stock-buy-sell-163400245.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Trade Desk TTD shares are trading at a stretched valuation, as suggested by the Value Score of F. In terms of the 12-month Price/Sales (P/S), TTD is currently trading at 20.78X, a premium compared...</p>\n\n<a href=\"https://finance.yahoo.com/news/trade-desk-stock-buy-sell-163400245.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0011850046.USD","symbol_name":"贝莱德全球长线股票 A2 USD","start_time":0,"source_url":"https://finance.yahoo.com/news/trade-desk-stock-buy-sell-163400245.html","article_id":"2493796222","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/hb34T5JpqfOKFdxuauyatA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/560ce7090345bb7408c706b8e0a8c3fc"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493796222","pubTimestamp":1734971640,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The Trade Desk TTD shares are trading at a stretched valuation, as suggested by the Value Score of F. In terms of the 12-month Price/Sales (P/S), TTD is currently trading at 20.78X, a premium compared with the Zacks Computer & Technology sector’s 6.44X and the Zacks Internet – Services industry’s 5.89X.Shares of The Trade Desk have surged 73.7% in the year-to-date period, outperforming the broader sector’s appreciation of 32% and the industry’s return of 32.8%.The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at 58 cents per share, unchanged over the past 30 days, suggesting 41.46% growth year over year.The Zacks Consensus Estimate for TTD’s 2024 revenues is pegged at $2.46 billion, indicating year-over-year growth of 26.51%. The consensus mark for earnings is pegged at $1.65 per share, unchanged over the past 30 days, indicating 30.95% growth year over year.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0011850046.USD":"贝莱德全球长线股票 A2 USD","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","SG9999015978.USD":"利安颠覆性创新基金A","BK4551":"寇图资本持仓","LU1267930573.SGD":"TEMPLETON GLOBAL \"AA\" (SGD) ACC A","BK4561":"索罗斯持仓","BK4581":"高盛持仓","TTD":"Trade Desk Inc.","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc","CTV":"Innovid","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU0708994859.HKD":"TEMPLETON GLOBAL \"A\" (HKD) ACC","BK4548":"巴美列捷福持仓","ROKU":"Roku Inc","BK4598":"佩洛西持仓","LU0029864427.USD":"TEMPLETON GLOBAL \"A\" (USD) INC","BK4023":"应用软件","BK4528":"SaaS概念","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4554":"元宇宙及AR概念","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","BK4532":"文艺复兴科技持仓","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","BK4108":"电影和娱乐","DIS":"迪士尼","BK4585":"ETF&股票定投概念","BK4571":"数字音乐概念","BK4507":"流媒体概念","BK4534":"瑞士信贷持仓","SG9999015945.SGD":"LionGlobal Disruptive Innovation Fund A SGD","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU2360107168.USD":"BGF NEXT GENERATION TECHNOLOGY \"A4\" (USD) INC","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU2290526834.HKD":"BGF NEXT GENERATION TECHNOLOGY \"A2\" (HKDHDG) ACC","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU0310800379.SGD":"FTIF - Templeton Global A Acc SGD","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","BK4009":"广告","BK4524":"宅经济概念","BK4588":"碎股","BK4550":"红杉资本持仓","SPOT":"Spotify Technology S.A.","LU1894683264.USD":"AMUNDI FUNDS US EQUITY RESEARCH VALUE \"A2\" (USD) ACC"},"translate_title":"The Trade Desk股票以20.78倍的市盈率买入、卖出还是持有？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SPOT":1,"ROKU":1,"DIS":1,"CTV":1,"TTD":0.9},"content_text":"The Trade Desk TTD shares are trading at a stretched valuation, as suggested by the Value Score of F. In terms of the 12-month Price/Sales (P/S), TTD is currently trading at 20.78X, a premium compared with the Zacks Computer & Technology sector’s 6.44X and the Zacks Internet – Services industry’s 5.89X.\nPrice/Sales Ratio (F12M)\nImage Source: Zacks Investment Research\nShares of The Trade Desk have surged 73.7% in the year-to-date period, outperforming the broader sector’s appreciation of 32% and the industry’s return of 32.8%.\nTTD’s exceptional performance can be attributed to its impressive portfolio, growing market share in the Connected TV (CTV) domain and expanding partnerships.\nYTD Performance\nImage Source: Zacks Investment Research\nThe Trade Desk offers positive guidance for the near term. It expects fourth-quarter 2024 revenues to be at least $756 million, indicating 25% year-over-year growth. Adjusted EBITDA is expected to be nearly $363 million.\nWe expect positive growth to continue in the near term. But is the strong growth prospect enough to justify a premium valuation? Let’s dig deep to find out.\nTTD’s Earnings Estimates Trend Steady\nThe Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at 58 cents per share, unchanged over the past 30 days, suggesting 41.46% growth year over year.\nThe Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $758.05 million, indicating year-over-year growth of 25.13%.\nThe Zacks Consensus Estimate for TTD’s 2024 revenues is pegged at $2.46 billion, indicating year-over-year growth of 26.51%. The consensus mark for earnings is pegged at $1.65 per share, unchanged over the past 30 days, indicating 30.95% growth year over year.\nTTD’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 6.09%.\n\nThe Trade Desk Price and Consensus\n  \nThe Trade Desk price-consensus-chart | The Trade Desk Quote\n\nFind the latest EPS estimates and surprises on Zacks Earnings Calendar.\nInnovative Portfolio Aids TTD’s Prospects\nThe Trade Desk has been benefiting from its innovative portfolio, an expanding global footprint, advancements in omnichannel ad inventory and the growing adoption of programmatic advertising.\nTTD’s CTV business continues to be its largest and fastest-growing segment as top brands make the transition from linear TV and user-generated content to CTV. Powered by AI, TTD’s Kokai solution is helping advertisers identify and target new potential customers with much greater precision.\nThe Trade Desk recently launched Ventura, a cutting-edge streaming TV operating system designed to improve user experience and advertising efficiency. Its standout features include seamless cross-platform content discovery, personalized recommendations and simplified subscription management. TTD will be collaborating with Smart TV original equipment manufacturers (OEM) and streaming TV aggregators to deploy Ventura.\nRich Partner Base Bodes Well for TTD\nThe Trade Desk’s rich partner base is a key catalyst. Spotify Technology SPOT has extended its partnership with TTD, piloting integrations with OpenPath and UID2 through the Spotify Ad Exchange. Its robust network includes major players like Disney DIS, NBCU, Walmart, Roku ROKU, LG, Fox and Netflix, providing a strong foundation for continued growth.\nTTD has also been signing prominent clients, growing its footprint in varied sectors. Reach, a U.K. news publisher of 130 media brands has adopted EUID to enhance ad experiences while also protecting journalism.\nGlobal media company Motorsport Network has adopted EUID to offer relevant ads to its 60 million users, focusing on privacy and transparency. Cint has also integrated UID2 for enhanced and omnichannel brand lift measurement.\nRoku recently announced its adoption of UID2 to enhance advertiser targeting precision and enable secure data collaboration through Roku Media.\nBuy, Sell or Hold TTD Stock?\nMacroeconomic uncertainties and the intensely competitive nature of the digital advertising industry, dominated by industry giants, such as Google and Amazon, pose a significant challenge to TTD’s prospects.\nIncreasing regulatory scrutiny around data privacy and shifts in consumer data practices have the potential to disrupt traditional methods of audience targeting.\nHence, we believe TTD’s premium valuation is unjustified at current levels.\nHowever, The Trade Desk’s strong portfolio, rich partner base and expanding clientele are key catalysts. Hence, investors who already own the stock might expect the company’s growth prospects to be rewarding over a longer term.\nThe Trade Desk carries a Zacks Rank #3 (Hold), which implies investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nThe Walt Disney Company (DIS) : Free Stock Analysis Report\nThe Trade Desk (TTD) : Free Stock Analysis Report\nRoku, Inc. (ROKU) : Free Stock Analysis Report\nSpotify Technology (SPOT) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2493796222"}