For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. The Trade Desk (TTD) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of TTD and the rest of the Computer and Technology group's stocks.
The Trade Desk is a member of our Computer and Technology group, which includes 594 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. TTD is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for TTD's full-year earnings has moved 2.33% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that TTD has returned about 148.85% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have lost about 0.45% on average. As we can see, The Trade Desk is performing better than its sector in the calendar year.
Looking more specifically, TTD belongs to the Internet - Services industry, a group that includes 43 individual stocks and currently sits at #101 in the Zacks Industry Rank. On average, stocks in this group have lost 21.48% this year, meaning that TTD is performing better in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on TTD as it attempts to continue its solid performance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.