This stock has gained 25% over the last week. Here’s why it could continue to climb.
Markets capped off a three-day winning streak Thursday, with the Dow gaining 1,351.62 points, or 6.4%, for its biggest three-day surge since 1931 over which the index gained more than 20%. The S&P 500 also gained more than 6%, while the Nasdaq added 5.6%.
Stocks shrugged off a dismal jobless claims report from the Labor Department, as well as the U.S. overtaking China and Italy to become the country with the most confirmed cases of COVID-19, as the Senate passed an historic $2 trillion stimulus package.
While all three major indexes are still in bear market territory even despite the surge seen the last few days, one expert is singling out a particular stock that could see further gains ahead.
Ascent Wealth Partners’ Todd Gordon said this week that The Trade Desk (NASDAQ: TTD), which has gained nearly 25% over the last week, is positioning for more upside.
The Trade Desk markets a software platform for digital ads, and Gordon says its fundamentals make the company “well positioned to take advantage of the shift in digital advertising, especially on mobile devices.”
He also noted that The Trade Desk has a “nice competitive advantage” thanks to is focus on programmatic advertising—automated purchases driven by algorithms, instead of buys made by human curators—which is fast becoming the fastest-growing segment in the digital advertising market in the U.S. And as this trend in advertising continues, an increasing share of that demand will benefit platforms like The Trade Desk.
Gordon said the key level for the stock is $190, where it has found support in the past. The stock is 10% above that level now.
Gordon isn’t the only one on Wall Street who’s bullish on The Trade Desk.
Pivotal Research Group analyst Michael Levine recently lifted his price target for the stock from $250 to $300 – 43.5% higher than the current price.
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