$TTD The Trade Desk

This stock comes well recommend and now appears in IBD’s “The New America” column. Worth consideration.

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This Ad Tech Firm Does Bidding For Customers, One At A Time

The Trade Desk managed to win over Wall Street by using real-time bidding. It’s a relatively new technique in the digital marketing space, currently used by auctioneers and advertising houses for smoother and more effective sales, by employing analytics with a sharp local focus.

“Essentially, our platform makes it possible to more quickly message specific ideas to specific people. Historically, most advertisers and media buyers have written big checks to a TV company, then crossed their fingers that commercials for their products are seen by the right people,”

“But we give media buyers the control to log onto our website, and target only the ads that meet their target audience,”

Ah the New is represented by the N in CANSLIM.

When a consumer lands on a webpage, watches internet-connected TV or uses a mobile application, this sets in motion a programmatic bidding auction for advertising inventory, with auctions that often take place as quick as one-tenth of a second.

rosy May 11 earnings report, which showed a growth in revenue to $53.4 million — up from $30.4 million from the year prior. That’s a whopping 76% increase in revenue, beating out the company’s 69% revenue spike from the year before. On the consumer satisfaction front, customer retention rates were 95% during the quarter, keeping in line with the past 13 quarters preceding it. Further, the company boasts the highest revenue per employee rate in the industry.

That is very nice growth on the top line.

The company is not without worries, though. In addition to Google and Amazon, competitive threats come from a slew of smaller players, as well as other formidable rivals, including Overstock.com (OSTK), Jumei International Holding (JMEI) and Microsoft’s (MSFT) media network operations.

Could be hurt if economy slows.

To remain competitive, The Trade Desk plans to increasingly associate its ad technology with Roku and other media streaming services like it, to capitalize on the way many people are watching TV these days.

“Consumers have moved to there, but for the most part, advertising dollars have not, and we want to be in step with that,” Stempeck said.

Growth rankings (it is ranked first in its group, CRTO is#3) but its group is weak, 73 of 197

Composite Rating 95 Pass
EPS Rating …72 Fail (its one weak point)
RS Rating …97 Pass
Group RS Rating B Pass
SMR Rating …A Pass
Acc/Dis Rating B+ Pass

EPS % Chg (Last Qtr) 100% (Very nice)
Last 3 Qtrs Avg EPS Growth 64% (very nice)

Qtrs of EPS Acceleration 1

EPS Est % Chg (Current Qtr) -5% (disappointing)

3 Yr EPS Growth Rate 69% (very nice)
Consecutive Yrs of Annual EPS Growth 2 (pretty good)
EPS Est % Chg for Current Year 26% (Pretty good)

Sales % Chg (Last Qtr) 76% (excellent)
3 Yr Sales Growth Rate 105% (excellent)

The stock has a good accumulation rating indicating institutions are buying it more than selling it.