NASDAQ:GCT, a strong growth stock, setting up for a breakout.

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 Analysis for NASDAQ:GCT

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:GCT scores a 9 out of 10:

• The Earnings Per Share has grown by an impressive 7560.20% over the past year.
• GCT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 72.61% yearly.
• GCT shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.77%.
• Measured over the past years, GCT shows a very strong growth in Revenue. The Revenue has been growing by 58.84% on average per year.
• The Earnings Per Share is expected to grow by 157.32% on average over the next years. This is a very strong growth
• GCT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.78% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Understanding NASDAQ:GCT's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:GCT has earned a 7 out of 10:

• GCT has an Altman-Z score of 4.56. This indicates that GCT is financially healthy and has little risk of 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's Debt to FCF ratio of 0.00 is amongst the best of the industry. GCT outperforms 90.91% of its industry peers.
• A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
• GCT has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. GCT outperforms 90.91% of its industry peers.
• A Current Ratio of 2.43 indicates that GCT has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 1.84, GCT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.

Profitability Analysis for NASDAQ:GCT

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

• GCT has a better Return On Assets (11.82%) than 90.91% of its industry peers.
• Looking at the Return On Equity, with a value of 24.63%, GCT belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
• GCT has a better Return On Invested Capital (17.45%) than 90.91% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for GCT is significantly above the industry average of 13.78%.
• The last Return On Invested Capital (17.45%) for GCT is well below the 3 year average (23.38%), which needs to be investigated, but indicates that GCT had better years and this may not be a problem.
• The Profit Margin of GCT (10.71%) is better than 100.00% of its industry peers.
• In the last couple of years the Profit Margin of GCT has grown nicely.
• GCT has a better Operating Margin (15.05%) than 100.00% of its industry peers.
• GCT's Operating Margin has improved in the last couple of years.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:GCT this score is currently 7:

Besides having an excellent technical rating, GCT also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. We notice that large players showed an interest for GCT in the last couple of days, which is a good sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Check the latest full fundamental report of GCT for a complete fundamental analysis.

For an up to date full technical analysis you can check the technical report of GCT

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.