We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GigaCloud Technology (GCT - Free Report) is a Zacks Rank #1 (Strong Buy) that provides end-to-end B2B ecommerce solutions for large parcel merchandise.
The Company's offers GigaCloud Marketplace that seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia, and Europe, to execute cross-border transactions
The stock has seen a big run since December, moving from $10 all the way to a recent high of $45. After posting positive earnings, the stock ran into some profit taking and pulled back.
After a nice bounce off the recent lows, buyers are taking back control and aiming for fresh highs.
About the Company
The company was formerly known as Oriental Standard Human Resources Holdings, but and changed its name to GigaCloud Technology in February 2021.
The stock has a Zacks Style Score of “A” in Growth and “A” in Momentum. It sports a Style Score of “B” in Value. The company has a market cap of $1.4 billion and a Forward PE of 13. GCT pays no dividend.
Q4 Earnings Beat
On March 15th, GCT reported a Q4 earnings beat of 50%. EPS came in at $0.87 v the $0.58 expected, and up from $0.31 last year.
Revenues came in at $244.7M v the $125.6M last year. Product revenue from GigaCloud was $88.3M, which was a 50.9% increase from the year prior. Off-platform ecommerce revenues were up 179.7% y/y.
Adjusted EDITBA was $43.8M v the $12.2M last year and margins increased to 28.5%, up from 21.2% last year.
Analyst Estimates
Analyst held estimates after earnings until recently. Over the last 7 days, we see numbers going up across each time frame. While there are not many analysts covering the name, those who are seem to be getting bullish.
For the current quarter, estimates have been taken higher by 38%, moving from $0.37 to $0.51.
For the current year, estimates have moved from $2.23 to $2.58, or 15% higher.
For next year, estimates have moved 33% higher, from $2.72 to $3.64.
Roth MKM recently reiterated GCT with a Buy and a $35 price target on healthy fundamentals.
Volatile Trading
The stock is very volatile, with a beta at 2.26. Investors should be picky with their entries as the intraday moves can be large.
Some insiders have been selling as of late, which has brought some negativity to the name. However, long-term buyers that enter at technical support will be rewarded if the fundamental story gains momentum.
The Technicals
GCT is up 90% so far this year, but the current price is 30% below 2024 highs. This year’s trading range has seen lows at $18 and highs above $45. This range can scare an investor so let’s look at some buyable levels.
When looking at moving averages, the 21-day and 50-day MA’s are lined up at $31.50-32. This is a good spot to play momentum for shorter term traders.
The 200-day is way down at $16.50, so it’s likely that doesn’t come into play anytime soon.
When looking at Fibonacci retracements, the 61.8% is at $23. This can be found by drawing December lows to recent highs. The stock did come close to this area in March, trading just above $25.
A move back above $40 and all-time highs would likely be in play.
Bottom Line
GigaCloud Technology is a momentum driven stock that is starting to gain attention from investors. With a market cap so low and volatility so big, investors should be patient with their entries.
If the earnings momentum can continue through the year, the stock should have no problem taking out the recent highs and moving toward the $60 area.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bull of the Day: GigaCloud Technology (GCT)
GigaCloud Technology (GCT - Free Report) is a Zacks Rank #1 (Strong Buy) that provides end-to-end B2B ecommerce solutions for large parcel merchandise.
The Company's offers GigaCloud Marketplace that seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia, and Europe, to execute cross-border transactions
The stock has seen a big run since December, moving from $10 all the way to a recent high of $45. After posting positive earnings, the stock ran into some profit taking and pulled back.
After a nice bounce off the recent lows, buyers are taking back control and aiming for fresh highs.
About the Company
The company was formerly known as Oriental Standard Human Resources Holdings, but and changed its name to GigaCloud Technology in February 2021.
The stock has a Zacks Style Score of “A” in Growth and “A” in Momentum. It sports a Style Score of “B” in Value. The company has a market cap of $1.4 billion and a Forward PE of 13. GCT pays no dividend.
Q4 Earnings Beat
On March 15th, GCT reported a Q4 earnings beat of 50%. EPS came in at $0.87 v the $0.58 expected, and up from $0.31 last year.
Revenues came in at $244.7M v the $125.6M last year. Product revenue from GigaCloud was $88.3M, which was a 50.9% increase from the year prior. Off-platform ecommerce revenues were up 179.7% y/y.
Adjusted EDITBA was $43.8M v the $12.2M last year and margins increased to 28.5%, up from 21.2% last year.
Analyst Estimates
Analyst held estimates after earnings until recently. Over the last 7 days, we see numbers going up across each time frame. While there are not many analysts covering the name, those who are seem to be getting bullish.
For the current quarter, estimates have been taken higher by 38%, moving from $0.37 to $0.51.
For the current year, estimates have moved from $2.23 to $2.58, or 15% higher.
For next year, estimates have moved 33% higher, from $2.72 to $3.64.
Roth MKM recently reiterated GCT with a Buy and a $35 price target on healthy fundamentals.
Volatile Trading
The stock is very volatile, with a beta at 2.26. Investors should be picky with their entries as the intraday moves can be large.
Some insiders have been selling as of late, which has brought some negativity to the name. However, long-term buyers that enter at technical support will be rewarded if the fundamental story gains momentum.
The Technicals
GCT is up 90% so far this year, but the current price is 30% below 2024 highs. This year’s trading range has seen lows at $18 and highs above $45. This range can scare an investor so let’s look at some buyable levels.
When looking at moving averages, the 21-day and 50-day MA’s are lined up at $31.50-32. This is a good spot to play momentum for shorter term traders.
The 200-day is way down at $16.50, so it’s likely that doesn’t come into play anytime soon.
When looking at Fibonacci retracements, the 61.8% is at $23. This can be found by drawing December lows to recent highs. The stock did come close to this area in March, trading just above $25.
A move back above $40 and all-time highs would likely be in play.
Bottom Line
GigaCloud Technology is a momentum driven stock that is starting to gain attention from investors. With a market cap so low and volatility so big, investors should be patient with their entries.
If the earnings momentum can continue through the year, the stock should have no problem taking out the recent highs and moving toward the $60 area.