Yahoo Finance Want To Invest In The Trade Desk Inc (NASDAQ:TTD)? Here’s How It Performed Lately
Analyzing The Trade Desk Inc’s (NASDAQ:TTD) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess TTD’s recent performance announced on 31 March 2018 and compare these figures to its long-term trend and industry movements. View our latest analysis for Trade Desk
Could TTD beat the long-term trend and outperform its industry?
For the purpose of this commentary, I like to use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This allows me to analyze different stocks on a similar basis, using the latest information. For Trade Desk, its most recent earnings (trailing twelve month) is US$54.96M, which compared to the previous year’s level, has increased by more than double. Given that these values are fairly short-term thinking, I’ve computed an annualized five-year value for Trade Desk’s earnings, which stands at US$7.85M This suggests that, on average, Trade Desk has been able to steadily grow its profits over the last few years as well.
What’s the driver of this growth? Well, let’s take a look at if it is solely a result of industry tailwinds, or if Trade Desk has seen some company-specific growth. Over the past couple of years, Trade Desk grew its bottom line faster than revenue by efficiently controlling its costs. This resulted in a margin expansion and profitability over time. Viewing growth from a sector-level, the US internet industry has been growing its average earnings by double-digit 17.61% over the previous year, and 18.14% over the past five. This shows that whatever tailwind the industry is gaining from, Trade Desk is able to amplify this to its advantage.
What does this mean?
Trade Desk’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Trade Desk to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for TTD’s future growth? Take a look at our free research report of analyst consensus for TTD’s outlook.
Financial Health: Is TTD’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
