Why NASDAQ:TTD Is a Promising High-Growth Stock in the Midst of Consolidation.

In this article, we'll take a closer look at TRADE DESK INC/THE -CLASS A (NASDAQ:TTD) as a potential candidate for growth investing. While it's important for investors to conduct their own research, TRADE DESK INC/THE -CLASS A has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

What does the Growth looks like for NASDAQ:TTD

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 19.63% 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
• TTD shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.88%.
• The Revenue has been growing by 32.46% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, TTD will show a very strong growth in Earnings Per Share. The EPS will grow by 25.74% on average per year.
• The Revenue is expected to grow by 20.78% on average over the next years. This is a very strong growth

Evaluating Health: NASDAQ:TTD

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:TTD, the assigned 7 reflects its health status:

• TTD has an Altman-Z score of 12.29. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 12.29, TTD belongs to the top of the industry, outperforming 94.74% 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.

Profitability Examination for NASDAQ:TTD

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 6 for profitability:

• Looking at the Return On Assets, with a value of 4.32%, TTD is in the better half of the industry, outperforming 77.89% of the companies in the same industry.
• TTD's Return On Equity of 9.29% is fine compared to the rest of the industry. TTD outperforms 73.68% of its industry peers.
• TTD has a Return On Invested Capital of 8.38%. This is in the better half of the industry: TTD outperforms 80.00% of its industry peers.
• The last Return On Invested Capital (8.38%) for TTD is above the 3 year average (5.35%), which is a sign of increasing profitability.
• With a decent Profit Margin value of 9.80%, TTD is doing good in the industry, outperforming 72.63% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 12.29%, TTD is in the better half of the industry, outperforming 75.79% of the companies in the same industry.
• TTD has a better Gross Margin (81.29%) than 93.68% of its industry peers.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:TTD this score is currently 7:

Besides having an excellent technical rating, TTD also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 94.75, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Disclaimer

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.