A strong stock as of late has been GigaCloud Technology Inc. (GCT). Shares have been marching higher, with the stock up 12.8% over the past month. The stock hit a new 52-week high of $49.22 in the previous session. GigaCloud Technology Inc. has gained 22.8% since the start of the year compared to the -9.1% move for the Zacks Business Services sector and the -4.1% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 26, 2026, GigaCloud Technology Inc. reported EPS of $1.04 versus consensus estimate of $0.65.
For the current fiscal year, GigaCloud Technology Inc. is expected to post earnings of $4.1 per share on $1.51 in revenues. This represents a 14.21% change in EPS on a 17.3% change in revenues. For the next fiscal year, the company is expected to earn $4.76 per share on $1.6 in revenues. This represents a year-over-year change of 16.1% and 5.68%, respectively.
Valuation Metrics
While GigaCloud Technology Inc. has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
GigaCloud Technology Inc. has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.1X. On a trailing cash flow basis, the stock currently trades at 12.2X versus its peer group's average of 12.1X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making GigaCloud Technology Inc. an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, GigaCloud Technology Inc. currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if GigaCloud Technology Inc. fits the bill. Thus, it seems as though GigaCloud Technology Inc. shares could have potential in the weeks and months to come.
How Does GCT Stack Up to the Competition?
Shares of GCT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is TeleTech Holdings, Inc. (TTEC). TTEC has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. TeleTech Holdings, Inc. beat our consensus estimate by 20.51%, and for the current fiscal year, TTEC is expected to post earnings of $1.20 per share on revenue of $2.03 billion.
Shares of TeleTech Holdings, Inc. have gained 9.9% over the past month, and currently trade at a forward P/E of 2.68X and a P/CF of 1.18X.
The Technology Services industry may rank in the bottom 70% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for GCT and TTEC, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).