The Trade Desk, Inc. (NASDAQ: TTD) Earnings Preview and Financial Health

The Trade Desk, Inc. (NASDAQ: TTD) Earnings Preview and Financial Health

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The Trade Desk, Inc. (NASDAQ: TTD) Earnings Preview and Financial Health

Summary

The Trade Desk, Inc. (NASDAQ: TTD) Earnings Preview and Financial Health

Earnings Expectations: Analysts predict an EPS of $0.42 and revenue of $686 million for the upcoming quarterly release. Bullish Technical Indicator: TTD has crossed above its 200-day moving average, indicating a potential long-term bullish trend. Financial Health: With a low debt-to-equity ratio of 0.12 and a current ratio of 1.81, The Trade Desk showcases strong liquidity and financial stability.

The Trade Desk, Inc. (NASDAQ:TTD) is a prominent player in the advertising technology sector, providing a global platform for ad buyers. As the company prepares to release its quarterly earnings on August 7, 2025, analysts anticipate an earnings per share (EPS) of $0.42 and revenue of approximately $686 million. This release will be followed by a webcast and conference call to discuss the financial outcomes.

Recently, TTD has crossed above its 200-day moving average, signaling a potential long-term bullish trend. This technical milestone suggests a key level of support, often seen as a positive indicator for investors. Over the past four weeks, TTD has gained 22%, reflecting strong growth momentum and resilience, as highlighted by its performance surpassing the S&P 500.

The stock is currently rated as a Zacks Rank #3 (Hold), indicating potential for further upward movement. This bullish outlook is supported by positive earnings estimate revisions, with no downward revisions in the past two months and two upward revisions for the current fiscal year. Such revisions often signal confidence in the company's future performance.

Despite its high valuation, with a price-to-earnings (P/E) ratio of approximately 105.33 and a price-to-sales ratio of about 16.69, The Trade Desk's growth potential remains strong. The enterprise value to sales ratio is around 16.38, and the enterprise value to operating cash flow ratio is approximately 49.79, reflecting the company's overall valuation in relation to its revenue and cash flow.

The Trade Desk maintains a low debt-to-equity ratio of 0.12, indicating a low level of debt compared to equity. Its current ratio of approximately 1.81 suggests a good level of liquidity to cover short-term liabilities. These financial metrics, combined with a positive industry outlook, suggest that The Trade Desk is well-positioned for continued growth.

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