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

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether TRADE DESK INC/THE -CLASS A (NASDAQ:TTD) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but TRADE DESK INC/THE -CLASS A has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

A Closer Look at Growth for NASDAQ:TTD

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:TTD has earned a 9 for growth:

• The Earnings Per Share has grown by an nice 11.93% over the past year.
• The Earnings Per Share has been growing by 45.87% on average over the past years. This is a very strong growth
• TTD shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.50%.
• The Revenue has been growing by 38.63% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 26.29% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 21.58% on average over the next years. This is a very strong growth

A Closer Look at Health for NASDAQ:TTD

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:TTD has received a 7 out of 10:

• An Altman-Z score of 9.73 indicates that TTD is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 9.73, TTD belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
• TTD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• TTD has a better Current ratio (1.87) than 67.02% of its industry peers.
• Looking at the Quick ratio, with a value of 1.87, TTD is in the better half of the industry, outperforming 69.15% of the companies in the same industry.

What does the Profitability looks like for NASDAQ:TTD

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:TTD scores a 6 out of 10:

• TTD has a better Return On Assets (3.38%) than 69.15% of its industry peers.
• With a decent Return On Equity value of 7.09%, TTD is doing good in the industry, outperforming 67.02% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 5.20%, TTD is in the better half of the industry, outperforming 69.15% of the companies in the same industry.
• Looking at the Profit Margin, with a value of 8.34%, TTD is in the better half of the industry, outperforming 73.40% of the companies in the same industry.
• TTD has a Operating Margin of 8.54%. This is in the better half of the industry: TTD outperforms 68.09% of its industry peers.
• The Gross Margin of TTD (81.18%) is better than 91.49% of its industry peers.

How do we evaluate the setup for NASDAQ:TTD?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:TTD currently has a 8 as setup rating:

TTD has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 64.01, a Stop Loss order could be placed below this zone.

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

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

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

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.