For Immediate Release

Chicago, IL – October 12, 2026 – Zacks Equity Research shares GigaCloud Technology Group Inc. (GCT Quick QuoteGCT - Free Report) as the Bull of the Day and Shoe Station Group Inc. (SHOE Quick QuoteSHOE - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Avient Corp. (AVNT Quick QuoteAVNT - Free Report) , Bank OZK (OZK Quick QuoteOZK - Free Report) and American Financial Group, Inc. (AFG Quick QuoteAFG - Free Report) .

Here is a synopsis of all five stocks:

Bull of the Day:

GigaCloud Technology Group Inc. is a rapidly growing technology and logistics company addressing a surprisingly difficult corner of the global e-commerce market: the storage, distribution and delivery of large, bulky products.

While traditional e-commerce platforms have made shipping small consumer goods remarkably efficient, moving furniture, appliances and other oversized merchandise remains expensive and logistically complicated. GigaCloud has developed an integrated marketplace and fulfillment network specifically designed to solve these challenges.

The company's business-to-business platform connects manufacturers and suppliers directly with retailers, handling everything from product sourcing and payments to warehousing and last-mile delivery. Its Supplier Fulfilled Retailing model also allows retailers to sell merchandise without holding the inventory themselves, reducing costs and inventory risk.

That specialization provides GigaCloud with a compelling competitive advantage in a large and fragmented market. The company has built a global network of 38 fulfillment centers spanning more than 12 million square feet, supported by thousands of buyers and suppliers.

More importantly, the business is delivering impressive financial results. Second-quarter revenue increased nearly 28% year over year to a record $411.6 million, while adjusted earnings per share surged nearly 45%. Gross margins also expanded, suggesting that the company's growing scale is translating into improving economics.

Those results have helped drive a sharp acceleration in earnings estimates, earning GCT a Zacks Rank #1 (Strong Buy). The stock has also demonstrated exceptional price momentum, recently breaking out to new all-time highs.

Despite its strong fundamentals and powerful technical setup, GigaCloud continues to trade at a relatively modest earnings multiple, offering an attractive combination of growth and valuation.

Interestingly, the company remains lightly covered on Wall Street, with just one analyst contributing to the current Zacks Consensus Estimate. That limited coverage creates additional uncertainty, but it also suggests GigaCloud could still be flying under the radar of many investors.

With accelerating earnings expectations, strong price momentum and a differentiated business model, GCT presents a compelling opportunity for investors seeking growth outside the market's most crowded technology trades.

GigaCloud Shares Get Upgraded

GigaCloud Technology currently sports a Zacks Rank #1 (Strong Buy), reflecting a sharp improvement in its earnings outlook. Although the company is covered by just one analyst, the magnitude of recent upward revisions is particularly encouraging.

Over the last 60 days, current year earnings estimates have increased 17.7%, while next year estimates have climbed even faster, rising 20.5%. Estimates for the next two quarters have also been raised by 16.4% and 20%, respectively.

These upgrades follow a string of impressive earnings reports. GigaCloud has exceeded earnings expectations in each of the last four quarters, delivering positive surprises of 52.3%, 60%, 19.5% and 36.5%, respectively. Such consistently strong results suggest that the company's earnings power has been improving faster than analysts anticipated.

Looking ahead, the growth outlook remains compelling. Revenues are projected to increase 23.4% this year to $1.59 billion, followed by another 9.9% increase to $1.75 billion next year. Meanwhile, earnings per share are expected to surge 37.1% this year to $4.92, before climbing another 18.3% to $5.82 in 2027.

Notably, earnings are expected to grow considerably faster than revenues, pointing to improving profitability and potential operating leverage as the business scales.

Despite these impressive growth forecasts and upward revisions, GigaCloud shares trade at just 11.5x forward earnings, an attractive valuation for a company delivering double-digit revenue growth and even faster earnings expansion.

GCT Stock Breaks Out to New Highs

Just this week, GigaCloud shares broke out from one of the cleanest bullish consolidation patterns I can find in the market today, surging to fresh highs.

The stock has spent several months building a well-defined base, with shares repeatedly testing resistance near $54 before finally breaking through. That extended consolidation, followed by a decisive move higher, is a particularly encouraging technical development.

As long as GCT holds above its breakout level near $54, the technical setup suggests shares could continue trending higher as more investors recognize the company's compelling combination of earnings growth, upward revisions and attractive valuation.

Should Investors Buy Shares in GCT?

GigaCloud offers investors a compelling combination of strong earnings growth, upward estimate revisions, attractive valuation and bullish price momentum. Its differentiated business model also provides exposure to a large market with significant opportunities for further expansion.

While limited analyst coverage adds uncertainty to the forecasts, the company's consistent earnings surprises and improving profitability are encouraging. With shares breaking out to new highs and trading at just 11.5x forward earnings, GCT looks well-positioned for further upside and is a stock growth investors should consider.

Bear of the Day:

Shoe Station Group Inc., formerly known as Shoe Carnival, is one of the largest family footwear retailers in the United States, operating more than 420 stores across its Shoe Carnival and Shoe Station banners.

The company sells a broad assortment of athletic, casual and dress shoes, catering primarily to value-conscious consumers. However, the business has struggled with declining sales, weakening profitability and intense competition across the footwear retail industry.

What makes the situation particularly concerning is the persistence of these challenges. Shoe Station has struggled to generate sustainable organic growth for several years, with declining sales at its legacy Shoe Carnival stores and increasing pressure on profit margins. Even its Shoe Station banner, which management has positioned as the company's primary growth opportunity, has recently experienced falling comparable-store sales.

The latest quarterly results underscore these difficulties. Revenue declined 7.2% year over year, while comparable store sales fell 7.1%. Both retail banners reported declining sales, and gross margins contracted sharply as increased promotional activity and inventory liquidation weighed on profitability.

These disappointing operating trends have been compounded by a weakening earnings outlook, putting additional pressure on investor sentiment. Although shares have already suffered a steep selloff, a low stock price does not necessarily translate into an attractive valuation when earnings are deteriorating.

The technical picture offers little encouragement either. SHOE shares have lost roughly two-thirds of their value over the last two years, dramatically underperforming the broader market and reflecting persistent selling pressure.

With little evidence of a sustained business turnaround, negative earnings momentum and a deeply bearish stock chart, Shoe Station appears to face additional downside risk despite its already substantial decline.

SHOE Shares Get Downgraded

The deterioration in Shoe Station's business is becoming increasingly apparent in Wall Street's earnings forecasts. Following another disappointing quarter and a reduced outlook from management, analysts have aggressively cut their expectations for the coming quarters and years.

Over the last 60 days, the current year earnings estimates have plunged 43.3%, from $1.50 to just $0.85 per share. Next year estimates have also been reduced by 18.8%, while forecasts for the next two quarters have collapsed by 51% and 65.9%, respectively.

These are substantial downward revisions, particularly for an established retailer, and highlight just how quickly the company's profitability is deteriorating. The negative revisions have pushed SHOE to a Zacks Rank #5 (Strong Sell).

Of course, with shares already down roughly 66% over the last two years, investors might assume much of the bad news is priced in. However, that may not be the case.

SHOE still trades at 15.4x forward earnings, hardly a bargain for a retailer struggling with declining sales and shrinking profit margins. Moreover, with earnings estimates falling so rapidly, even that valuation could prove misleading if the company's financial performance continues to disappoint.

Until there is evidence that sales are stabilizing and earnings expectations have stopped falling, it is difficult to make a compelling case for a turnaround in SHOE shares.

Should Investors Avoid SHOE Stock?

Shoe Station faces a difficult road ahead. Years of sluggish sales, mounting competitive pressures and deteriorating profitability suggest the company's challenges may be more structural than cyclical.

While a turnaround is certainly possible, there is little in the current operating trends or earnings outlook to suggest one is imminent. Moreover, the stock's persistent downward momentum and relatively uninspiring valuation leave investors with little margin for error.

Until the company demonstrates meaningful improvement in its fundamentals, investors may be better served looking elsewhere in the market.

Additional content:

3 Stocks in Focus that Hiked Dividends Amid Ongoing Market Volatility

Wall Street has been gripped by volatility. A surge in crude prices amid ongoing tensions in the Middle East and fears of another rate hike by the Federal Reserve have dented investors' confidence.

Inflation remains a major challenge for the Federal Reserve, and investors believe the situation could worsen if the U.S.-Iran war continues for a longer period.

With market uncertainty continuing, conservative investors seeking reliable income and some cushion against volatility may want to explore dividend-paying stocks.

These stocks can generate a regular income stream through consistent payouts while potentially offering greater stability during turbulent market conditions. Here are three dividend stocks worth considering: Avient Corp., Bank OZK and  American Financial Group, Inc..

Inflation, Geopolitical Tensions Rattle Wall Street

Markets have stayed volatile over the past several months as concerns over rising inflation and a weakening economy continue to unsettle investors. Oil prices have remained mostly high since February, after war broke out between the United States and Iran.

Since then, there has been little progress in peace talks, as both the warring nations have continued attacks on each other. The Federal Reserve was already struggling to bring inflation under control, and a surge in oil prices worsened the situation.

The Federal Reserve finally hiked interest rates by a quarter percentage point in its September policy meeting, but inflation remains sharply higher than its 2% target. Fears grew further this week after President Donald Trump said that he has no plans to reach a deal with Iran to end the war, as the United States is reportedly gearing up to carry out massive attacks in the Middle East

Investors are now worried that another interest rate hike by the Fed in its October policy meeting could put further pressure on their spending power. Higher borrowing costs could weigh on the broader economy as consumers will struggle to make purchases. These fears could keep markets volatile for a longer period.

3 Stocks That Recently Announced Dividend Hikes

Avient Corporation

Avient Corporation is a global specialty-materials company focused on color, additives, inks, engineered polymers, advanced composites and performance fibers, combining materials science, formulation expertise and manufacturing scale. AVNT serves consumer, packaging, defense, healthcare, industrial, transportation, building & construction, telecommunications and energy markets from 98 manufacturing sites across North America, Latin America, Europe, the Middle East and Africa and Asia. Avient Corporation carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

On Oct. 6, Avient Corporation announced that its shareholders would receive a dividend of $0.28 a share on Jan. 7. AVNT has a dividend yield of 2.68%. Over the past five years, Avient Corporation has increased its dividend six times, and its payout ratio presently sits at 36% of earnings. Check Avient Corporation's dividend history here.

Bank OZK

Bank OZK conducts operations through 267 offices in nine states, including Arkansas, Georgia, Florida, North Carolina, Texas, Tennessee, California, New York and Mississippi. OZK offers a wide range of retail and commercial banking services to businesses, individuals and non-profit and governmental entities. Bank OZK carries a Zacks Rank #3. 

On Oct. 1, Bank OZK declared that its shareholders would receive a dividend of $0.49 a share on Oct. 20. OZK has a dividend yield of 4.41%. Over the past five years, Bank OZK has increased its dividend 21 times, and its payout ratio presently sits at 31% of earnings. Check Bank OZK's dividend history here.

American Financial Group

American Financial Group, Inc. is a holding company that, through its subsidiaries, primarily engages in property and casualty insurance. AFG focuses on specialized commercial products for businesses. American Financial Group has a Zacks Rank #3. 

On Oct. 1, American Financial Group announced that its shareholders would receive a dividend of $0.97 a share on Oct. 23. AFG has a dividend yield of 2.53%. Over the past five years, American Financial Group has increased its dividend 17 times, and its payout ratio presently sits at 30% of earnings. Check American Financial Group's dividend history here.

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