THE TRADE DESK INC-CLASS A (NASDAQ:TTD) – A Strong Growth Stock with a Technical Breakout Pattern

THE TRADE DESK INC-CLASS A (NASDAQ:TTD) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines robust fundamental growth metrics with a promising chart pattern, making it worth a closer look.

Strong Growth Fundamentals

• Revenue & Earnings Growth: TTD has demonstrated impressive growth, with revenue increasing by 25.06% over the past year and earnings per share (EPS) rising by 34.37%. The company’s five-year average revenue growth stands at 29.90%, well above industry norms.
• Profitability: The company scores an 8/10 in profitability, with strong margins—operating margin at 17.63% and profit margin at 16.04%, outperforming most peers in the media sector.
• Financial Health: TTD maintains a solid balance sheet with no debt, earning a 7/10 health rating. Its Altman-Z score of 8.67 indicates low bankruptcy risk.
• Valuation: While the stock trades at a premium (P/E of 44.22), its high growth prospects and profitability justify the valuation to some extent.

Technical Setup Points to Potential Breakout

• Bull Flag Pattern: TTD is currently forming a bull flag, a continuation pattern that often precedes further upside after a strong rally.
• Support & Resistance: Key support lies near $75.10, while resistance levels are found at $76.31 and $79.40. A breakout above these levels could signal further gains.
• Volume & Momentum: Recent trading volume has been lighter during the pullback, which is typical for healthy consolidations. The stock’s short-term trend is positive, though the long-term trend remains neutral.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks with similar characteristics and is updated daily.

For a deeper dive, review the full fundamental analysis of TTD and the technical analysis report.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.