Exploring the Growth Potential of NASDAQ:GCT as It Nears a Breakout.

Exploring Growth Potential: GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and GIGACLOUD TECHNOLOGY INC - A has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected GIGACLOUD TECHNOLOGY INC - A on our screen for growth with base formation, suggesting it merits a closer look.

Growth Insights: 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 302.00% over the past year.
• 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 63.65%.
• Measured over the past years, GCT shows a very strong growth in Revenue. The Revenue has been growing by 36.70% on average per year.
• GCT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.77% yearly.
• GCT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.67% yearly.

Health Assessment of NASDAQ:GCT

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GCT has achieved a 6 out of 10:

• An Altman-Z score of 3.04 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.
• The Debt to FCF ratio of GCT (0.00) is better than 84.62% of its industry peers.
• A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
• With a decent Debt to Equity ratio value of 0.00, GCT is doing good in the industry, outperforming 76.92% of the companies in the same industry.
• GCT's Quick ratio of 1.09 is fine compared to the rest of the industry. GCT outperforms 61.54% of its industry peers.

A Closer Look at Profitability for NASDAQ:GCT

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:GCT, the assigned 8 is noteworthy for profitability:

• GCT has a better Return On Assets (10.78%) than 84.62% of its industry peers.
• Looking at the Return On Equity, with a value of 33.16%, GCT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
• GCT has a better Return On Invested Capital (14.25%) than 84.62% of its industry peers.
• With an excellent Profit Margin value of 12.74%, GCT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
• In the last couple of years the Profit Margin of GCT has grown nicely.
• With an excellent Operating Margin value of 15.75%, GCT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:GCT?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:GCT currently has a 7 as setup rating:

Although the technical rating is only medium, GCT does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 32.35. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 30.69, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for GCT in the last couple of days, which is a good sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Disclaimer

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.