NASDAQ:GCT qualifies as a high growth stock and is consolidating.

Last update: Jul 5, 2024

In this article, we'll take a closer look at GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as a potential candidate for growth investing. While it's important for investors to conduct their own research, GIGACLOUD TECHNOLOGY INC - A has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Unpacking NASDAQ:GCT's Growth Rating

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:

GCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 302.00%, which is quite impressive.
GCT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 92.98% yearly.
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.
Based on estimates for the next years, GCT will show a very strong growth in Earnings Per Share. The EPS will grow by 29.77% on average per year.
The Revenue is expected to grow by 31.67% on average over the next years. This is a very strong growth

A Closer Look at Health for NASDAQ:GCT

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 6 for health:

GCT has an Altman-Z score of 3.02. This indicates that GCT is financially healthy and has little risk of bankruptcy at the moment.
The Debt to FCF ratio of GCT is 0.00, which is an excellent value as it means it would take GCT, only 0.00 years of fcf income to pay off all of its debts.
GCT's Debt to FCF ratio of 0.00 is amongst the best of the industry. GCT outperforms 84.62% of its industry peers.
GCT has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
GCT's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. GCT outperforms 76.92% of its industry peers.
GCT's Quick ratio of 1.09 is fine compared to the rest of the industry. GCT outperforms 61.54% of its industry peers.

Profitability Examination for NASDAQ:GCT

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:

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

How do we evaluate the setup for NASDAQ:GCT?

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. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 32.93. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 30.81, a Stop Loss order could be placed below this zone.

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.

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

Disclaimer

This article should in no way be interpreted as advice. 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.