15 Best Growth Stocks to Buy for the Next 3 Years

10. Trade Desk Inc. (NASDAQ:TTD)

3-Year Revenue CAGR: 26.90%

Number of Hedge Fund Holders: 63

Trade Desk Inc. (NASDAQ:TTD) is a technology company that offers a self-service cloud-based ad-buying platform. This allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels. These include video, display, audio, digital-out-of-home, native, and social.

As a leading cloud-based ad-tech platform, Trade Desk connects advertisers with ad-inventory suppliers across streaming, TV, mobile, and out-of-home displays. The company manages over $12 billion in ad spend within a $1 trillion ad industry. This growth is anchored in its AI-powered advertising platform, called Kokai. Trade Desk Inc. (NASDAQ:TTD) is now transitioning all clients to the Kokai platform.

The company outpaced nearly every segment of digital advertising in 2024 and delivered $2.4 billion of revenue. This was up 26% year-over-year. However, on March 18, Justin Patterson, an analyst at KeyBanc, lowered the price target on the stock to $74 from $130 while keeping his Overweight rating. Trade Desk Inc. (NASDAQ:TTD) is actively exploring ways to integrate AI across its suite of products.

Rowan Street Capital highlighted the company’s strong fundamental growth and stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its Q4 2024 investor letter:

“The Trade Desk (TTD): Investment Initiated: March 2020

Internal Rate of Return (IRR): 54%

The Trade Desk has been our most successful investment to date. March 2025 will mark five years since we opportunistically initiated our position at a cost basis of $17.40 (split-adjusted). Since then, TTD has appreciated more than sevenfold, delivering an annualized return of approximately 54%.

These exceptional results far outpace the company’s strong fundamental growth, with revenues and earnings compounding at approximately 25% annually over this period (refer to the table below). The primary reason for this outsized return lies in the price at which we were able to acquire TTD during the early days of the pandemic, when market fears briefly drove it down to just 10x revenues. Today, the valuation has expanded significantly to approximately 25x revenues, amplifying our returns…” (Click here to read the full text)