Over a three-month span ending on July 9th, the S&P 500 (^GSPC) surpassed expectations by yielding over 25%, making this the sixth occasion in its history to achieve such a feat. What’s intriguing is that, not only has the S&P 500 consistently risen one year after this period, but it has also averaged a return of approximately 21% during the following year.
In essence, historical trends suggest that the stock market is poised for a rise, with many Wall Street analysts recommending buying shares in The Trade Desk (TTD) and Pure Storage (PSTG).
- Among 42 analysts, The Trade Desk has a median target price of $90 per share. That implies 10% upside from its current share price of $82.
- Among 20 analysts, Pure Storage has a median target price of $70 per share. That implies 25% upside from its current share price of $55.
Here’s what investors should know about these magnificent stocks.
1. The Trade Desk
Trade Desk operates the biggest autonomous digital advertising platform known as a Demand-Side Platform (DSP). This type of software assists brands and marketing agencies in designing, evaluating, and enhancing their digital ad campaigns. Recently, analysts at Frost & Sullivan have recognized it as the foremost DSP, acknowledging its rapid growth and innovative approach. The company holds a robust position in connected TV and retail advertising mainly because of its independent business structure.
To clarify, The Trade Desk does not produce media content. This sets it apart from companies like Alphabet and Meta Platforms, who may have a bias towards directing ad buyers towards their own content on platforms such as Google Search and Facebook due to their ownership of the content. The independence of The Trade Desk has enabled it to establish partnerships with CTV publishers such as Netflix and Walt Disney, along with major retailers like Target and Walmart.
In the first quarter, The Trade Desk announced impressive financial figures. For over a decade now, their customer retention rate has stayed above 95%. Their revenue soared by 25% to reach $616 million, while non-GAAP earnings grew by 27%, amounting to $0.33 per diluted share. In prepared remarks, CEO Jeff Green stated that the company’s growth rate exceeds the average of the broader digital marketing industry and they are capturing more market share.
Analyst predictions suggest that The Trade Desk’s annual adjusted earnings growth could be around 12% up until 2026. Given its current valuation, which is roughly 48 times its adjusted earnings, some might consider it pricey. However, I believe analysts may be underestimating the company’s potential for growth.
As a fervent observer of the ad tech landscape, I’m thrilled to share some exciting insights! Grand View Research projects an annual growth rate of 14% for ad tech spending, all the way up to 2030. But In fact, during the last six quarters, they’ve consistently surpassed the consensus earnings estimate by an average of 12%. Now, isn’t that something to look forward to?
2. Pure Storage
I often find myself admiring the innovative solutions crafted by Pure Storage, a company renowned for designing top-tier data storage products for enterprises. What sets them apart is their focus on all-flash arrays – systems that solely employ flash memory, offering unparalleled speed and dependability compared to hard disk drives. Moreover, they boast about their DirectFlash technology, a combination of software and hardware, which apparently streamlines operations by minimizing common bottlenecks and redundancies typically found in traditional solid-state drives, all while utilizing flash memory.
For the 11th consecutive year, Gartner has recognized Pure Storage as a top leader in primary storage platforms. Moreover, the company’s impressive Net Promoter Score of 82 underscores its exceptional customer satisfaction levels. Cognitive Market Research predicts that the all-flash array market will grow at an annual rate of 24%, expanding steadily up to 2031.
In the first quarter, Pure Storage surpassed predictions, but the overall results were somewhat inconsistent. The revenue grew by 12%, reaching a total of $778 million. However, the non-GAAP operating margin decreased by four percentage points and the non-GAAP earnings dropped by 9% to $0.29 per diluted share. On the positive note, the management anticipates that the operating margin will improve in the second quarter.
Recently, Pure Storage unveiled the FlashBlade XL – a storage platform that promises top-tier performance for artificial intelligence and high-performance computing tasks, as claimed by the company itself. The CEO, Charles Giancarlo, expressed his belief in maintaining our upward trajectory, stating that we are determined to expand our market presence and fortify our dominance in the realm of data storage and management.
Analysts on Wall Street anticipate that Pure Storage’s earnings, excluding certain items, will increase by approximately 19% per year until the fiscal year ending in January 2027. Given this projected growth rate, their current valuation of 33 times adjusted earnings appears reasonable. This is particularly true considering that the company has consistently surpassed expectations, outperforming the consensus by an average of 21% over the past six quarters. Thus, those with a long-term perspective might find it prudent to invest a modest amount now.
Read More
- Gold Rate Forecast
- 📢 BrownDust2 X BiliBili World 2025 Special Coupon!
- KPop Demon Hunters: Is Your Idol by Saja Boys Inspired by Real K-Pop Bands? Here’s What We Know
- Superman’s Record-Breaking $21M+ Thursday Box Office: Highest of 2025
- Why Are Nicki Minaj and SZA Really Beefing on X? Fans Left Wondering as Rappers Hurl Insults in Sudden Feud
- Dakota Johnson-Anne Hathaway’s Verity Release Date Out: Here’s When Colleen Hoover’s Movie Adaptation Will Hit the Screens
- Why Tesla Stock Plummeted 21.3% in the First Half of 2025 — and What Comes Next
- Ultraman Live Stage Show: Kaiju Battles and LED Effects Coming to America This Fall
- Genshin Impact 5.8 livestream: start times and where to watch
- Meta CEO Mark Zuckerberg Just Assembled a “Super Intelligence Avengers” Team That Could Totally Change the Game in Artificial Intelligence (AI). Here’s Why That Makes Meta a “Must-Own” AI Stock.
2025-07-24 11:43