NASDAQ:TTD, a strong growth stock, setting up for a breakout.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether TRADE DESK INC/THE -CLASS A (NASDAQ:TTD) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but TRADE DESK INC/THE -CLASS A has surfaced on our radar for growth with base formation, warranting further examination.

Analyzing Growth Metrics

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:TTD has received a 9 out of 10:

• The Earnings Per Share has grown by an nice 19.05% over the past year.
• The Earnings Per Share has been growing by 36.07% on average over the past years. This is a very strong growth
• Looking at the last year, TTD shows a very strong growth in Revenue. The Revenue has grown by 23.35%.
• TTD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.46% yearly.
• The Earnings Per Share is expected to grow by 27.50% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 21.20% on average over the next years. This is a very strong growth

Deciphering NASDAQ:TTD's Health Rating

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 9.80. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
• TTD has a better Altman-Z score (9.80) than 92.71% of its industry peers.
• There is no outstanding debt for TTD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

Looking at the Profitability

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

• TTD has a better Return On Assets (3.66%) than 73.96% of its industry peers.
• With a decent Return On Equity value of 8.27%, TTD is doing good in the industry, outperforming 79.17% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 6.66%, TTD is in the better half of the industry, outperforming 76.04% of the companies in the same industry.
• The 3 year average ROIC (5.35%) for TTD is below the current ROIC(6.66%), indicating increased profibility in the last year.
• TTD has a Profit Margin of 9.19%. This is amongst the best in the industry. TTD outperforms 82.29% of its industry peers.
• With a decent Operating Margin value of 10.30%, TTD is doing good in the industry, outperforming 70.83% of the companies in the same industry.
• TTD's Gross Margin of 81.21% is amongst the best of the industry. TTD outperforms 91.67% of its industry peers.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:TTD is 7:

Besides having an excellent technical rating, TTD also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 86.53. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 81.44, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

For an up to date full technical analysis you can check the technical report of TTD

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.