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Here’s Why The Trade Desk (TTD) is a Strong Buy Right Now


On Oct 10, The Trade Desk TTD was upgraded to Zacks Rank #1 (Strong Buy). The upgrade reflects positive earnings estimate revisions.

Notably, the Zacks Consensus Estimate for 2018 earnings has remained steady at $2.15 over the last 60 days. However, the consensus estimate for 2019 has increased by a penny to $2.63 per share.

Moreover, The Trade Desk beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive earnings surprise of 80.87%.

The Trade Desk reported strong second-quarter 2018 results. Earnings of 60 cents per share surpassed the Zacks Consensus Estimate by 16 cents and increased 15.4% year over year.

Revenues jumped 54% from the year-ago quarter to a record $112.3 million, which not only surpassed the company’s expectations but also the Zacks Consensus Estimate of $104 million.

Portfolio Strength Drives Growth

The Trade Desk is benefiting from portfolio strength supported by the launch of innovative products. This is also helping the company retain users, which remained above 95% over the last 18 months.

The Trade Desk continues to win advertisers, which is evident from the fact that the top 200 global advertisers joined its platform in the last three months. The company also stated that Ad Age's top 50 worldwide advertisers increased their spending by almost 100% year over year over the last 12 months.

The Trade Desk Inc. Price and Consensus

The Trade Desk Inc. Price and Consensus | The Trade Desk Inc. Quote

Further, increasing mobile spending (up 100% year over year in the quarter) as well as strong cross-device spending bodes well for The Trade Desk.

Moreover, the company is working with some of the biggest publishers like Google, Alibaba, Pandora, Spotify, CBS, Dish Network, Discovery and DirecTV. This is expected to drive top-line growth in the near term.

Other Stocks to Consider

Investors can also consider MeetMe MEET, Twitter TWTR and Twilio TWLO from the broader Computer & Technology sector. The stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for MeetMe, Twitter and Twilio is currently projected to be 20%, 22.1% and 9%, respectively.

Will You Make a Fortune on the Shift to Electric Cars?

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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

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