NASDAQ:GCT: a strong growth stock preparing for the next leg up?.

In this article we will dive into GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as a possible candidate for growth investing. Investors should always do their own research, but we noticed GIGACLOUD TECHNOLOGY INC - A showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

What does the Growth looks like for NASDAQ:GCT

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:GCT has achieved a 9 out of 10:

• The Earnings Per Share has grown by an impressive 106.58% over the past year.
• 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 89.85%.
• 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 29.77% on average per year.
• GCT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 34.34% yearly.

Health Examination for NASDAQ:GCT

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:GCT, the assigned 7 reflects its health status:

• 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's Debt to FCF ratio of 0.00 is amongst the best of the industry. GCT outperforms 85.71% 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 has a Debt to Equity ratio of 0.00. This is in the better half of the industry: GCT outperforms 78.57% of its industry peers.
• A Current Ratio of 2.13 indicates that GCT has no problem at all paying its short term obligations.
• GCT's Current ratio of 2.13 is fine compared to the rest of the industry. GCT outperforms 64.29% of its industry peers.
• GCT's Quick ratio of 1.39 is fine compared to the rest of the industry. GCT outperforms 64.29% of its industry peers.

Looking at the Profitability

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 7 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 12.15%, GCT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
• The Return On Equity of GCT (32.57%) is better than 85.71% of its industry peers.
• With a decent Return On Invested Capital value of 13.80%, GCT is doing good in the industry, outperforming 78.57% of the companies in the same industry.
• GCT has a better Profit Margin (11.75%) than 92.86% of its industry peers.
• GCT's Profit Margin has improved in the last couple of years.
• GCT has a Operating Margin of 12.93%. This is amongst the best in the industry. GCT outperforms 92.86% of its industry peers.

How does the Setup look for NASDAQ:GCT

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:GCT scores a 8 out of 10:

GCT has only a medium technical rating, but it does show 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 23.55, 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.

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

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

Keep in mind

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.