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.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:TTD, the assigned 6 reflects its growth potential:

• TTD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.00%, which is quite impressive.
• Measured over the past years, TTD shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.00% on average per year.
• The Earnings Per Share is expected to grow by 27.39% on average over the next years. This is a very strong growth
• TTD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.60% yearly.

What does the Health looks like 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:

• TTD has an Altman-Z score of 13.76. This indicates that TTD is financially healthy and has little risk of bankruptcy at the moment.
• TTD has a better Altman-Z score (13.76) than 98.85% 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.

Assessing Profitability 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 7 out of 10:

• The Return On Assets of TTD (5.60%) is better than 87.36% of its industry peers.
• TTD's Return On Equity of 11.74% is amongst the best of the industry. TTD outperforms 81.61% of its industry peers.
• TTD has a better Return On Invested Capital (10.29%) than 88.51% of its industry peers.
• The 3 year average ROIC (5.35%) for TTD is below the current ROIC(10.29%), indicating increased profibility in the last year.
• TTD has a better Profit Margin (13.34%) than 88.51% of its industry peers.
• With an excellent Operating Margin value of 16.29%, TTD belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
• TTD's Gross Margin of 81.06% is amongst the best of the industry. TTD outperforms 91.95% of its industry peers.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:TTD has a 8 as its setup rating, indicating its current consolidation status.

TTD has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 121.06, 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.

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.