Yahoo Movies The Trade Desk, Inc. (NASDAQ:TTD): Poised For Long Term Success?
On 30 June 2019, The Trade Desk, Inc. (NASDAQ:TTD) announced its earnings update. Overall, analyst forecasts seem fairly subdued, as a 5.0% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 67%. Currently with trailing-twelve-month earnings of US$88m, we can expect this to reach US$93m by 2020. Below is a brief commentary on the longer term outlook the market has for Trade Desk. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Trade Desk
How will Trade Desk perform in the near future?
The 14 analysts covering TTD view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for TTD, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 30% based on the most recent earnings level of US$88m to the final forecast of US$185m by 2022. EPS reaches $3.8 in the final year of forecast compared to the current $2.08 EPS today. However, the expansion of the current 18% margin is not expected to be sustained, as it begins to contract to 17% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Trade Desk, there are three key aspects you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Trade Desk worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Trade Desk is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Trade Desk? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
