Exploring the Growth Potential of NASDAQ:TTD as It Nears a Breakout.

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.

Evaluating Growth: 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:

• TTD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.63%, which is quite good.
• 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 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 27.32% on average per year.
• The Revenue is expected to grow by 21.42% on average over the next years. This is a very strong growth

How do we evaluate the Health 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:

• An Altman-Z score of 12.70 indicates that TTD is not in any danger for bankruptcy at the moment.
• The Altman-Z score of TTD (12.70) is better than 96.74% 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.
• With a decent Current ratio value of 1.79, TTD is doing good in the industry, outperforming 60.87% of the companies in the same industry.
• TTD has a better Quick ratio (1.79) than 60.87% of its industry peers.

How do we evaluate the Profitability for NASDAQ:TTD?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:TTD has earned a 6 out of 10:

• TTD's Return On Assets of 4.32% is fine compared to the rest of the industry. TTD outperforms 77.17% of its industry peers.
• Looking at the Return On Equity, with a value of 9.29%, TTD is in the better half of the industry, outperforming 72.83% of the companies in the same industry.
• TTD's Return On Invested Capital of 8.38% is fine compared to the rest of the industry. TTD outperforms 79.35% 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.
• TTD's Profit Margin of 9.80% is fine compared to the rest of the industry. TTD outperforms 72.83% of its industry peers.
• Looking at the Operating Margin, with a value of 12.29%, TTD is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• TTD's Gross Margin of 81.29% is amongst the best of the industry. TTD outperforms 92.39% of its industry peers.

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.

Besides having an excellent technical rating, TTD also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 94.32, 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.

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

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. 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.