Why NASDAQ:TTD Is a Standout High-Growth Stock in a Consolidation Phase.

Last update: Dec 11, 2023

In this article we will dive into TRADE DESK INC/THE -CLASS A (NASDAQ:TTD) as a possible candidate for growth investing. Investors should always do their own research, but we noticed TRADE DESK INC/THE -CLASS A showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Examination for NASDAQ:TTD

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:TTD boasts a 9 out of 10:

The Earnings Per Share has grown by an nice 11.93% over the past year.
TTD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.87% yearly.
Looking at the last year, TTD shows a very strong growth in Revenue. The Revenue has grown by 23.50%.
TTD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.63% yearly.
Based on estimates for the next years, TTD will show a very strong growth in Earnings Per Share. The EPS will grow by 26.29% on average per year.
The Revenue is expected to grow by 21.31% on average over the next years. This is a very strong growth

How We Gauge Health for NASDAQ:TTD

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:TTD was assigned a score of 7 for health:

TTD has an Altman-Z score of 9.90. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TTD (9.90) is better than 93.94% of its industry peers.
TTD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
The Current ratio of TTD (1.87) is better than 67.68% of its industry peers.
TTD has a better Quick ratio (1.87) than 69.70% of its industry peers.

Evaluating Profitability: NASDAQ:TTD

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:TTD, the assigned 6 is a significant indicator of profitability:

With a decent Return On Assets value of 3.38%, TTD is doing good in the industry, outperforming 69.70% of the companies in the same industry.
With a decent Return On Equity value of 7.09%, TTD is doing good in the industry, outperforming 67.68% of the companies in the same industry.
TTD has a better Return On Invested Capital (5.20%) than 70.71% of its industry peers.
Looking at the Profit Margin, with a value of 8.34%, TTD is in the better half of the industry, outperforming 74.75% of the companies in the same industry.
TTD's Operating Margin of 8.54% is fine compared to the rest of the industry. TTD outperforms 69.70% of its industry peers.
With an excellent Gross Margin value of 81.18%, TTD belongs to the best of the industry, outperforming 92.93% of the companies in the same industry.

Why is NASDAQ:TTD a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:TTD exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

TTD has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 70.97. Right above this resistance zone may be a good entry point.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of TTD contains the most current fundamental analsysis.

Check the latest full technical report of TTD for a complete technical analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.