News Image

Why NASDAQ:GCT Is a Promising High-Growth Stock in the Midst of Consolidation.

By Mill Chart

Last update: Mar 26, 2024

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but GIGACLOUD TECHNOLOGY INC - A has surfaced on our radar for growth with base formation, warranting further examination.

Growth Assessment of NASDAQ:GCT

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:GCT, the assigned 9 reflects its growth potential:

  • GCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 539.39%, which is quite impressive.
  • The Earnings Per Share has been growing by 92.98% on average over the past years. This is a very strong growth
  • Looking at the last year, GCT shows a very strong growth in Revenue. The Revenue has grown by 43.63%.
  • The Revenue has been growing by 36.70% on average over the past years. This is a very strong growth!
  • Based on estimates for the next years, GCT will show a very strong growth in Earnings Per Share. The EPS will grow by 21.07% on average per year.
  • Based on estimates for the next years, GCT will show a very strong growth in Revenue. The Revenue will grow by 31.93% on average per year.

Looking at the Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:GCT was assigned a score of 7 for health:

  • An Altman-Z score of 3.08 indicates that GCT is not in any danger for bankruptcy at the moment.
  • GCT has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
  • GCT has a Debt to FCF ratio of 0.00. This is amongst the best in the industry. GCT outperforms 91.67% of its industry peers.
  • A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
  • GCT's Debt to Equity ratio of 0.00 is amongst the best of the industry. GCT outperforms 83.33% of its industry peers.
  • GCT's Quick ratio of 1.31 is fine compared to the rest of the industry. GCT outperforms 75.00% of its industry peers.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:GCT has achieved a 8:

  • GCT has a Return On Assets of 11.20%. This is amongst the best in the industry. GCT outperforms 91.67% of its industry peers.
  • Looking at the Return On Equity, with a value of 32.39%, GCT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 14.04%, GCT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
  • GCT had an Average Return On Invested Capital over the past 3 years of 15.64%. This is above the industry average of 10.99%.
  • GCT's Profit Margin of 13.37% is amongst the best of the industry. GCT outperforms 91.67% of its industry peers.
  • In the last couple of years the Profit Margin of GCT has grown nicely.
  • The Operating Margin of GCT (16.11%) is better than 91.67% of its industry peers.

Why is NASDAQ:GCT a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:GCT currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, GCT also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 26.91, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of GCT contains the most current fundamental analsysis.

Our latest full technical report of GCT contains the most current technical analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

Back

GIGACLOUD TECHNOLOGY INC - A

NASDAQ:GCT (5/24/2024, 7:00:00 PM)

After market: 32.4996 -0.05 (-0.15%)

32.55

+0.2 (+0.62%)

GCT News

News Image3 days ago - InvezzGigaCloud (GCT) stock analysis: sell and don’t look back

GigaCloud (NASDAQ: GCT) stock price plunged hard this week after a research firm poked holes into its remarkable growth. It crashed to a low of $25.20, its lowest level since March 27th this year. It has moved into a deep bear market, falling by over 33% from its highest level this year. Concerns about GigaCloud […]

News Image3 days ago - InvestorPlace3 Quiet Stocks on the Brink of Explosive Growth

Discover three hidden gems among stocks with explosive growth potential, showcasing robust financials and innovative strategies.

News Image4 days ago - GigaCloud TechnologyGigaCloud Technology Inc Responds to Short-Seller Report
News Image4 days ago - GigaCloud TechnologyGigaCloud Technology Inc Responds to Short-Seller Report

EL MONTE, Calif., May 23, 2024 (GLOBE NEWSWIRE) -- GigaCloud Technology Inc (Nasdaq: GCT) (“GigaCloud” or the “Company”), a pioneer of global end-to-end...

News Image4 days ago - Get NewsGrizzly Research Releases Coverage Report on GigaCloud (NASDAQ:GCT)
News Image4 days ago - InvestorPlaceBarnes & Noble Education (BNED) Stock Pops 73% in Second Day of Rally

Barnes & Noble Education stock is up on Wednesday with heavy trading of BNED shares alongside a recent meme stock rally.

News Image4 days ago - InvestorPlaceGigaCloud (GCT) Stock Plunges on Grizzly Research Short Report

GigaCloud Technology stock is down on Wednesday with heavy trading of GCT shares alongside a short report from Grizzly Research.

News Image4 days ago - InvestorPlace3 Bargain Stocks Ready to Rocket Higher This Month

These bargain stocks to buy may not capture as much investor attention as big-name mega-caps, but they each have unlimited potential.

News Image4 days ago - TheNewswire.comGrizzly Research Releases Coverage Report on GigaCloud (NASDAQ:GCT)

New York, May 22, 2024 – Grizzly Research has released a comprehensive coverage report on GigaCloud Technology Inc. (NASDAQ: GCT). The report provides an in-depth analysis of GigaCloud’s business operations, highlighting several areas of concern regarding the company’s financial reporting and operational practices. A copy of the report can be found here:

News Image4 days ago - ChartmillNASDAQ:GCT, an undervalued stock with good fundamentals.

GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT), an undervalued stock with good fundamentals.

News Image6 days ago - InvestorPlaceInvest in the Underestimated: 7 Bargain Stocks Poised to Prove Wall Street Wrong

These undervalued stocks to buy offer an alternative to dipping your toes back into meme stock mania. Remember how it turned out last time?

News Image8 days ago - InvestorPlace7 Great Growth Stocks You Need to Own Before 2025

These seven growth stocks have strong momentum and profitability, positioning them for potential outperformance through 2025 and beyond.

GCT Links
Follow us for more