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

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 Examination for 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 106.58%, 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.
• GCT shows a strong growth in Revenue. In the last year, 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 32.60% on average per year.
• GCT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 35.40% yearly.

Health Assessment of NASDAQ:GCT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:GCT has earned a 6 out of 10:

• 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.
• With an excellent Debt to FCF ratio value of 0.00, GCT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
• A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.00, GCT is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
• GCT has a Current Ratio of 2.13. This indicates that GCT is financially healthy and has no problem in meeting its short term obligations.
• GCT has a Quick ratio of 1.39. This is in the better half of the industry: GCT outperforms 64.29% of its industry peers.

Evaluating Profitability: 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:

• With an excellent Return On Assets value of 12.15%, GCT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
• GCT has a Return On Equity of 32.57%. This is amongst the best in the industry. GCT outperforms 92.86% of its industry peers.
• GCT's Return On Invested Capital of 13.80% is fine compared to the rest of the industry. GCT outperforms 78.57% of its industry peers.
• The Profit Margin of GCT (11.75%) is better than 92.86% of its industry peers.
• In the last couple of years the Profit Margin of GCT has grown nicely.
• With an excellent Operating Margin value of 12.93%, GCT belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.

How does the Setup look 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:

GCT has a bad technical rating, but it does show 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 21.32. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 19.74, 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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.