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The Top Stock for Your Portfolio

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Dear Trader,

Welcome to Monday and the first of our Top 5 weekly updates. Each and every Monday, we will be presenting the top stock out of our picks for the week – just for you.

Top 5 continues to provide hit after hit from our weekly stock trades. Right now, the average gain from the trades that hit their targets is running at a fabulous 7.51%. Of course, that’s just for a handful of days, so this adds up and adds up quickly week after week.

The total running gain from all of the hit trades is currently at 383.17%. Again, that’s a phenomenal record from trades that take just days to hit and that are presented each and every week inside Top 5.

To get the full rundown of all of the Top 5 stocks and option alternatives, click here to watch our latest Weekly Review session.

For the Alerts Tracker and the details for all of the hit trades, click here.

And don’t forget to check your email for the invitation to our weekly Monday online sessions where we go through all of the Top 5 stocks and options.

But now, let’s get right to the meat of the matter for today with your Top 5 stock for this week:

The Trade Desk

The Trade Desk (TTD) is perfectly named as our kick-off stock for Top 5.

The company is a go-to source for providing advertising links and content leads across all digital platforms.

So, whether a company is running websites, mobile apps or even video services, The Trade Desk sets up monetization systems to sell and gather intel on users – all behind the scenes from customers.

Now, all of us try to avoid getting sold stuff or tracked – but that’s the world of online commerce. And The Trade Desk is one of the prime architects of the systems that make all of that work for its contracted company clients.

It continues to ramp up its revenue from all of its setups for its customers. Sales for the latest quarter were up by 100.90%… What a number!

But it wasn’t just a flash in the pan for just one quarter, as the trailing three years have resulted in average quarterly sales gains of 29.43% on a compound annual growth rate (CAGR) basis.

The Trade Desk Quarterly Revenue Growth — Source: Bloomberg

All of these sales and sales gains are made with great, fat operating margin – currently running at 17.20%. That’s pretty darn good – as it costs a pretty penny to hire and pay for all of the programming and operations to make its services run silently behind the scenes for its customers.

In turn, this fuels a great return on shareholder equity that’s currently running at 26.90%.

Then, the company is under-leveraged for less risk. It has cash and equivalents running in excess of 1.50 times its near-term liabilities. And debts? Not much, as its debt is sitting at a paltry 10.00 of assets.

The Trade Desk Delivers & Then Some

The Trade Desk continues to deliver to shareholders – not just in internal return but in actual share return.

Over the past five years alone – the class A shares have gained 4,367.67% for an annual equivalent gain of 115.98%.

The Trade Desk Total Return History — Source: Bloomberg

 Now, it sells and keeps selling more of its efficiently run services. And the shares have been working and working exceedingly well.

But this week, we have modest expectations for a quick hit of a gain for you.

The Top 5 Target to Hit

As the newest Top 5 stock, The Trade Desk class A shares are set with a target price of $82.89 from the closing price on Friday at $80.58.

It’s a modest target, but again… At Top 5, we get you into a stock, get the hit and move to the next top stock to pile up the gains – week in and week out.

The Trade Desk Class A Shares Price — Source: Bloomberg

You can see that the stock had drifted lower as August got going – only to begin its re-ascension towards our target that should be hit in short order.

The Next Step

Trade The Trade Desk class A shares today. Then to get the full rundown on each of the stocks inside Top 5

To get the full rundown of all of the Top 5 stocks and option alternatives, click here to watch our latest Weekly Review session.

For the Alerts Tracker and the details for all of the hit trades, click here.

And don’t forget to check your email for the invitation to our weekly Monday online sessions where we go through all of the Top 5 stocks and options.

Keep on Trading,

Josh Martinez

Editor, Josh’s Top 5

P.S. This is a great pick, but it’s still only one out of my Top 5. To find out about the rest of the trades I’m recommending, complete with specific entry and exit points, you need to click here and join me on the Top 5 journey…