THE TRADE DESK INC-CL A (NASDAQ:TTD) – A Strong Growth Stock Showing Technical Breakout Potential

THE TRADE DESK INC-CL A (NASDAQ:TTD) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines high growth metrics with solid profitability and financial health, while recent price action suggests a potential breakout. Below, we examine why TTD stands out.

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) growing by 34.37%. The company’s five-year average revenue growth stands at 29.90%, well above industry norms.
• Future Growth Outlook: Analysts expect continued strong performance, with projected annual EPS growth of 21.80% and revenue growth of 18.87% over the next few years.
• Profitability: The company boasts an 80.11% gross margin and a 16.04% profit margin, outperforming 91.75% of its peers in the media industry.

Financial Health & Valuation

• No Debt: TTD has no outstanding debt, strengthening its financial position.
• Valuation: While the stock trades at a premium (P/E of 43.26), this is justified by its high growth and profitability. The forward P/E of 34.98 is more in line with industry averages.

Technical Setup

• Recent Price Action: TTD has been consolidating between $65.55 and $77.57, now trading near the upper end of this range.
• Support & Resistance: Key support lies around $70.96, while resistance is seen near $76.31. A breakout above resistance could signal further upside.
• Setup Rating: The stock has a technical setup rating of 7/10, indicating a favorable entry point with limited overhead resistance.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks with similar characteristics.
For a deeper analysis, review the full fundamental report and technical report.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.