Is NASDAQ:TTD on the Verge of a Major Breakout as a Strong Growth Stock?

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.

Understanding NASDAQ:TTD's Growth Score

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 19.63% over the past year.
• Measured over the past years, TTD shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.07% on average per year.
• TTD shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.88%.
• Measured over the past years, TTD shows a very strong growth in Revenue. The Revenue has been growing by 32.46% on average per year.
• 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.
• Based on estimates for the next years, TTD will show a very strong growth in Revenue. The Revenue will grow by 20.78% on average per year.

What does the Health looks like for 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 12.78. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of TTD (12.78) is better than 96.84% 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.
• TTD has a better Current ratio (1.79) than 61.05% of its industry peers.
• TTD's Quick ratio of 1.79 is fine compared to the rest of the industry. TTD outperforms 61.05% of its industry peers.

What does the Profitability looks like for NASDAQ:TTD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:TTD has achieved a 6:

• TTD's Return On Assets of 4.32% is fine compared to the rest of the industry. TTD outperforms 77.89% of its industry peers.
• TTD has a better Return On Equity (9.29%) than 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 78.95% of its industry peers.
• The 3 year average ROIC (5.35%) for TTD is below the current ROIC(8.38%), indicating increased profibility in the last year.
• 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's Gross Margin of 81.29% is amongst the best of the industry. TTD outperforms 92.63% of its industry peers.

How does the Setup look for NASDAQ:TTD

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:TTD scores a 8 out of 10:

Besides having an excellent technical rating, TTD also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 95.93, a Stop Loss order could be placed below this zone.

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

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

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.