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Recognitions Reflect Strong Financial Performance and Continued Marketplace Growth  | Source: GigaCloud Technology

EL MONTE, Calif., Oct. 23, 2026 (GLOBE NEWSWIRE) -- GigaCloud Technology Inc (Nasdaq: GCT) ("GigaCloud" or the "Company"), a pioneer of global end-to-end B2B technology solutions for large parcel merchandise, today announced it ranked No. 13 on Fortune's Fastest Growing Companies™ 2026 list and No. 12 on TIME's America's Growth Leaders 2027 list.

The recognitions build on GigaCloud's growing record of industry accolades, marking its second consecutive year in TIME's U.S. growth ranking and following its inclusion on the magazine’s World's Growth Leaders 2026 list. These distinctions reflect the Company's continued expansion of its global B2B marketplace and execution of its long-term strategy.

“At a time when technological innovation is reshaping industries and creating new opportunities across the economy, we are especially honored to receive this recognition from both Fortune and TIME,” said Larry Wu, Founder and Chief Executive Officer of GigaCloud. “It is a meaningful acknowledgment of the progress we have made in an industry that plays a fundamental role in global commerce, and a reminder of the responsibility we have to help move it forward. We remain committed to delivering greater value and operational efficiency for the businesses we serve and accelerating the digital transformation of the global large-parcel supply chain.”

The complete Fortune Fastest Growing Companies 2026™ and TIME’s America’s Growth Leaders 2027 lists are available here and here, respectively.

About the Fortune Fastest Growing Companies List
Now in its 41st year, the Fortune Fastest Growing Companies™ list recognizes publicly traded companies demonstrating strong growth across key financial measures. Companies are evaluated based on revenue growth, earnings-per-share growth and three-year annualized total return. Data for the list is provided by S&P Global Market Intelligence. The full list methodology can be found here.

About TIME’s America’s Growth Leaders 
TIME and Statista's America's Growth Leaders 2027 ranking recognizes U.S.-based public companies that achieved the highest compound annual revenue growth over a multi-year period. Rankings are determined by verified CAGR data, with additional factors like absolute revenue and employment growth used for context. More information can be found here.

About GigaCloud Technology Inc
GigaCloud Technology Inc is a pioneer of global end-to-end B2B technology solutions for large parcel merchandise. The Company’s B2B ecommerce platform, which it refers to as the “GigaCloud Marketplace,” integrates everything from discovery and payments to logistics tools into one easy-to-use platform. The Company’s global marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia and Europe, to execute cross-border transactions with confidence, speed and efficiency. The Company offers a truly comprehensive solution that transports products from the manufacturer’s warehouse to the end customer’s doorstep, all at one fixed price. The Company first launched its marketplace in January 2019 by focusing on the global furniture market and has since expanded into additional categories such as home appliances and fitness equipment. For more information, please visit the Company’s website: https://investors.gigacloudtech.com/.

For investor and media inquiries, please contact:

GigaCloud Technology Inc
Investor Relations - [email protected]

PondelWilkinson Inc.
Todd Kehrli (Investors) – [email protected]
Laurie Berman (Investors) – [email protected]
George Medici (Media) – [email protected]

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. GigaCloud Technology Inc. (GCT - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

GigaCloud Technology Inc. is one of 244 individual stocks in the Business Services sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. GigaCloud Technology Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for GCT's full-year earnings has moved 17.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, GCT has moved about 50% on a year-to-date basis. Meanwhile, stocks in the Business Services group have lost about 11.3% on average. This shows that GigaCloud Technology Inc. is outperforming its peers so far this year.

Another Business Services stock, which has outperformed the sector so far this year, is Trane Technologies (TT - Free Report) . The stock has returned 18.6% year-to-date.

Over the past three months, Trane Technologies' consensus EPS estimate for the current year has increased 2.9%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, GigaCloud Technology Inc. belongs to the Technology Services industry, a group that includes 123 individual stocks and currently sits at #101 in the Zacks Industry Rank. On average, this group has lost an average of 21.5% so far this year, meaning that GCT is performing better in terms of year-to-date returns. Trane Technologies is also part of the same industry.

Investors with an interest in Business Services stocks should continue to track GigaCloud Technology Inc. and Trane Technologies. These stocks will be looking to continue their solid performance.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about GigaCloud Technology Inc. (GCT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

GigaCloud Technology Inc. currently has an average brokerage recommendation (ABR) of 1.50, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by four brokerage firms. An ABR of 1.50 approximates between Strong Buy and Buy.

Of the four recommendations that derive the current ABR, three are Strong Buy, representing 75% of all recommendations.

Brokerage Recommendation Trends for GCT

Check price target & stock forecast for GigaCloud Technology Inc. here>>>

The ABR suggests buying GigaCloud Technology Inc., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in GCT?Looking at the earnings estimate revisions for GigaCloud Technology Inc., the Zacks Consensus Estimate for the current year has increased 17.7% over the past month to $4.92.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for GigaCloud Technology Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for GigaCloud Technology Inc may serve as a useful guide for investors.

GigaCloud Technology Inc. (GCT - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned +9.5% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Technology Services industry, to which GigaCloud Technology Inc. belongs, has lost 5.6% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, GigaCloud Technology Inc. is expected to post earnings of $1.28 per share, indicating a change of +29.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +20% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $4.92 points to a change of +37.1% from the prior year. Over the last 30 days, this estimate has changed +17.7%.

For the next fiscal year, the consensus earnings estimate of $5.82 indicates a change of +18.3% from what GigaCloud Technology Inc. is expected to report a year ago. Over the past month, the estimate has changed +20.5%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, GigaCloud Technology Inc. is rated Zacks Rank #1 (Strong Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For GigaCloud Technology Inc., the consensus sales estimate for the current quarter of $394.8 million indicates a year-over-year change of +18.7%. For the current and next fiscal years, $1.59 billion and $1.75 billion estimates indicate +23.4% and +9.9% changes, respectively.

Last Reported Results and Surprise HistoryGigaCloud Technology Inc. reported revenues of $411.64 million in the last reported quarter, representing a year-over-year change of +27.6%. EPS of $1.16 for the same period compares with $0.91 a year ago.

Compared to the Zacks Consensus Estimate of $383.7 million, the reported revenues represent a surprise of +7.28%. The EPS surprise was +36.47%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

GigaCloud Technology Inc. is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about GigaCloud Technology Inc.. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

GigaCloud Technology Inc. (GCT - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For GigaCloud Technology Inc., strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $1.28 per share, which is a change of +29.3% from the year-ago reported number.

Over the last 30 days, the Zacks Consensus Estimate for GigaCloud Technology Inc. has increased 20% because one estimate has moved higher compared to no negative revisions.

Current-Year Estimate RevisionsFor the full year, the company is expected to earn $4.92 per share, representing a year-over-year change of +37.1%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for GigaCloud Technology Inc.. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 17.7%.

Favorable Zacks RankThanks to promising estimate revisions, GigaCloud Technology Inc. currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineInvestors have been betting on GigaCloud Technology Inc. because of its solid estimate revisions, as evident from the stock's 5.6% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: GigaCloud Technology Inc. (GCT - Free Report) GigaCloud Technology Inc. operates a global B2B ecommerce platform connecting primarily Asian manufacturers with resellers in the United States, Europe and Japan through an integrated marketplace that combines product discovery, payments and logistics.

GCT is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Business Services stock. GCT has a Momentum Style Score of A, and shares are up 3.9% over the past four weeks.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.74 to $4.92 per share. GCT boasts an average earnings surprise of +42.1%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GCT should be on investors' short list.

Here are three stocks with buy rank and strong value characteristics for investors to consider today, October 5:

Newell Brands Inc. (NWL - Free Report) : This consumer and commercial products company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.8% over the last 60 days.

Newell Brands has a price-to-earnings ratio (P/E) of 7.10, compared with 17.60 for the industry. The company possesses a Value Score of A.

Ecopetrol S.A. (EC - Free Report) : This integrated oil and gas company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13% over the last 60 days.

Ecopetrol has a price-to-earnings ratio (P/E) of 8.00, compared with 22.45 for the S&P 500. The company possesses a Value Score of A.

GigaCloud Technology Inc. (GCT - Free Report) : This B2B ecommerce solutions and large parcel merchandising company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.7% over the last 60 days.

GigaCloud has a price-to-earnings ratio (P/E) of 10.93, compared with 13.40 for the industry. The company possesses a Value Score of A.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Learn more about the Value score and how it is calculated here.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about GigaCloud Technology Inc. (GCT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

GigaCloud Technology Inc. currently has an average brokerage recommendation (ABR) of 1.80, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by five brokerage firms. An ABR of 1.80 approximates between Strong Buy and Buy.

Of the five recommendations that derive the current ABR, three are Strong Buy, representing 60% of all recommendations.

Brokerage Recommendation Trends for GCT

Check price target & stock forecast for GigaCloud Technology Inc. here>>>

While the ABR calls for buying GigaCloud Technology Inc., it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is GCT a Good Investment?Looking at the earnings estimate revisions for GigaCloud Technology Inc., the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.18.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for GigaCloud Technology Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for GigaCloud Technology Inc.

GigaCloud Technology Inc. (NASDAQ: GCT - Get Free Report) insider Marshall Bernes sold 12,000 shares of the firm's stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $53.47, for a total transaction of $641,640.00. Following the sale, the insider directly owned 41,150 shares in the company, valued at

In the latest trading session, GigaCloud Technology Inc. (GCT - Free Report) closed at $52.51, marking a -1.15% move from the previous day. This move lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow saw a downswing of 0.68%, while the tech-heavy Nasdaq depreciated by 1.13%.

Shares of the company witnessed a gain of 1.72% over the previous month, beating the performance of the Business Services sector with its loss of 4.94%, and the S&P 500's gain of 1.26%.

Investors will be eagerly watching for the performance of GigaCloud Technology Inc. in its upcoming earnings disclosure. In that report, analysts expect GigaCloud Technology Inc. to post earnings of $1.1 per share. This would mark year-over-year growth of 11.11%.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.18 per share and a revenue of $1.53 billion, signifying shifts of +16.43% and +18.96%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for GigaCloud Technology Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, GigaCloud Technology Inc. is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, GigaCloud Technology Inc. is currently being traded at a Forward P/E ratio of 12.71. This denotes a discount relative to the industry average Forward P/E of 17.88.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about GigaCloud Technology Inc. (GCT - Free Report) .

GigaCloud Technology Inc. currently has an average brokerage recommendation (ABR) of 1.80, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by five brokerage firms. An ABR of 1.80 approximates between Strong Buy and Buy.

Of the five recommendations that derive the current ABR, three are Strong Buy, representing 60% of all recommendations.

Brokerage Recommendation Trends for GCT

Check price target & stock forecast for GigaCloud Technology Inc. here>>>

The ABR suggests buying GigaCloud Technology Inc., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is GCT a Good Investment?Looking at the earnings estimate revisions for GigaCloud Technology Inc., the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.18.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for GigaCloud Technology Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for GigaCloud Technology Inc.

In the latest close session, GigaCloud Technology Inc. (GCT - Free Report) was up +1.68% at $52.74. The stock outpaced the S&P 500's daily loss of 0.48%. On the other hand, the Dow registered a loss of 0.29%, and the technology-centric Nasdaq decreased by 0.56%.

Heading into today, shares of the company had gained 0% over the past month, outpacing the Business Services sector's loss of 2.87% and the S&P 500's loss of 0.82%.

Investors will be eagerly watching for the performance of GigaCloud Technology Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.1, marking a 11.11% rise compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.18 per share and revenue of $1.53 billion. These totals would mark changes of +16.43% and +18.96%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for GigaCloud Technology Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, GigaCloud Technology Inc. boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, GigaCloud Technology Inc. is currently exchanging hands at a Forward P/E ratio of 12.41. This valuation marks a discount compared to its industry average Forward P/E of 17.75.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 35% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GCT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

SAN JOSE, Calif.--(BUSINESS WIRE)-- #4G--GCT Semiconductor Forms Strategic Partnership to Advance Next-Generation UAV Control and Communications.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about GigaCloud Technology Inc. (GCT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

GigaCloud Technology Inc. currently has an average brokerage recommendation (ABR) of 1.80, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by five brokerage firms. An ABR of 1.80 approximates between Strong Buy and Buy.

Of the five recommendations that derive the current ABR, three are Strong Buy, representing 60% of all recommendations.

Brokerage Recommendation Trends for GCT

Check price target & stock forecast for GigaCloud Technology Inc. here>>>

The ABR suggests buying GigaCloud Technology Inc., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is GCT Worth Investing In?Looking at the earnings estimate revisions for GigaCloud Technology Inc., the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.18.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for GigaCloud Technology Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for GigaCloud Technology Inc.

GCT Semiconductor NYSE: GCTS reported second-quarter 2026 revenue of $1 million, down 18% from $1.2 million a year earlier, as the company continued its transition from 5G chipset development to commercialization. Management said customer deployment schedules shifted during the quarter, but it maintained that engagement and long-term demand for its technology remain intact.

Chief Executive Officer John Schlaefer said the company’s commercialization pipeline has broadened across three areas: terrestrial broadband, satellite and non-terrestrial connectivity, and industrial IoT and specialized networking applications. He said the company is seeking to reduce its dependence on any individual customer deployment by pursuing opportunities across multiple end markets.

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“The primary variable today is deployment timing rather than customer interest,” Schlaefer said, adding that customer production schedules may shift as certification activities are completed and deployment plans are finalized.

Chipset Shipments Rise Sequentially GCT shipped more than 5,100 5G chipsets during the second quarter, a sequential increase of about 71% from the first quarter. Schlaefer said the shipments went primarily to four customers across four applications: fixed wireless access, aviation, mobile hotspots and push-to-talk phones.

During the question-and-answer session, Schlaefer said customer program delays were meaningful enough that the company had expected “significantly higher revenue” in the quarter. He attributed the timing changes to customers’ corporate restructuring and refocusing efforts in some cases, as well as external factors affecting launch schedules in others. He said the affected programs remain active and viable, with expected activity later in the year.

For the second half of 2026, GCT expects chipset shipments to exceed first-half levels, both in the quantity of chips shipped and the number of customers receiving them. However, management declined to provide specific shipment forecasts through the first quarter of 2027, citing variability in customer ramp schedules.

Focus on Broadband and Satellite Opportunities Schlaefer said the company sees the largest near-term revenue potential in terrestrial broadband and satellite and non-terrestrial connectivity, where it has been working on fixed wireless access and satellite programs for some time. He said these segments have substantial activity that has not yet ramped.

IoT and specialized networking represent the broadest set of potential applications, according to Schlaefer, including industrial, positioning, aviation and defense-related uses. He noted that average selling prices in IoT could be lower than in the fixed wireless and satellite markets.

After the quarter ended, GCT signed a customer in the unmanned aerial vehicle market, with potential consumer and defense applications. Schlaefer said the company’s technology can support control and telemetry functions. The customer has not yet announced its product, and GCT did not disclose its name due to confidentiality provisions.

Management also said it expects to disclose the identity of a satellite communications provider once that partner provides approval. Schlaefer said that could occur in the fourth quarter or the first quarter, depending on the customer’s launch plans.

Loss Widens on Warrant Liability Revaluation Second-quarter cost of net revenues rose 49% to $1.2 million from $800,000 a year earlier, largely due to higher unit volumes. The company reported a negative gross margin for the period, which Chief Financial Officer Edmond Cheng said was not representative of management’s expectations for future profitability. Cheng said margins are expected to improve as 5G product sales become a more significant portion of revenue.

Research and development expense fell to $3.3 million from $3.5 million, reflecting completion of a 5G chip design project and lower professional-services and stock-based compensation costs, partly offset by higher payroll-related expenses. Sales and marketing expense was $1 million, compared with $1.1 million a year earlier. General and administrative expense declined to $2.8 million from $3.4 million, primarily due to a lower loss related to changes in the allowance for credit losses on accounts receivable. Net loss widened to $20.4 million from $13.5 million in the prior-year quarter. Cheng said the latest result included a $12.3 million loss from changes in the fair value of common-stock warrant liabilities, driven by increases in the company’s common stock price and the market price of its publicly traded warrants.

Beginning this quarter, GCT is introducing adjusted EBITDA as a supplemental metric. Adjusted EBITDA loss improved slightly to $6.6 million from $6.7 million a year earlier. Cheng said the metric is intended to provide a view of operating performance excluding significant non-cash fair-value adjustments tied to warrant liabilities.

Liquidity and Production Capacity GCT ended the quarter with $30.2 million in cash and cash equivalents, along with $1.1 million of net accounts receivable and $1.5 million of net inventory. The company said it has secured wafer-production capacity for the remainder of 2026 and through the first quarter of 2027 in anticipation of expected chip demand.

Schlaefer said the wafer commitments are important in a tight foundry environment, but added that the company believes its capacity is appropriately sized. Because the wafers can support multiple product SKUs, he said a delay in customer ramps would not create a perishable inventory issue and the company could slow future purchases if needed.

Cheng said second-quarter cash burn was elevated by roughly $7 million to $7.5 million because the company prepaid supply-chain costs through year-end. Looking ahead, he said GCT anticipates quarterly cash burn of approximately $9 million to $9.5 million amid tight supply conditions, compared with an estimated $8 million to $8.5 million per quarter absent those conditions.

The company also amended its at-the-market equity program during the quarter, increasing maximum aggregate gross proceeds available under the program to $120 million from $75 million. The total share registration capacity remains $200 million.

About GCT Semiconductor (NYSE:GCTS)GCT Semiconductor Holding, Inc, operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways GigaCloud's Q2 revenues rose 27.6% to $411.6M as Europe and New Classic led management's growth focus.Europe GMV climbed 66% year over year, while third-party sellers rose more than 400% for GigaCloud.New Classic posted $16.3M in Q2 revenues, with integration on track for completion by mid-next year. GigaCloud Technology Inc. (GCT - Free Report) used its second-quarter 2026 earnings call to emphasize marketplace scaling and disciplined integration. Founder, chairman and CEO Larry Wu and president Iman Schrock highlighted Europe and New Classic as growth priorities.

Revenues rose 27.6% to $411.6 million, beating the Zacks Consensus Estimate of $383.7 million. Adjusted EPS was $1.65; GAAP EPS of $1.16 topped the Zacks Consensus Estimate of $0.85.

GCT Marketplace Growth Supports the Core ModelPresident Iman Schrock said that trailing 12-month marketplace GMV increased 21% year over year to $1.7 billion. Active third-party sellers rose 26% to 1,465, and active buyers increased 17% to 12,823.

Schrock highlighted 9% U.S. GMV growth despite declines in the furniture industry. He pointed to the marketplace model, supplier-fulfilled retailing and dynamic pricing as sources of flexibility.

Founder, chairman and CEO Larry Wu said that GigaCloud remains focused on building digital infrastructure for large-parcel B2B transactions across channels and geographies. He emphasized expansion and profitable growth.

GigaCloud Builds Momentum in EuropeEurope was GigaCloud's fastest-growing region. Schrock said that quarterly GMV there increased 66% year over year, while third-party sellers rose more than 400%.

Third-party sellers now account for more than 15% of Europe marketplace GMV, up from 6% a year earlier. Schrock said that the marketplace is progressing from first-party product seeding toward greater third-party participation.

In the Q&A, CFO Erica Wei said that Europe is generating high double-digit growth. Product margins are a strong contributor, while service margins trail the United States because logistics density and scale are less developed.

GCT Advances the New Classic IntegrationNew Classic generated $16.3 million of second-quarter revenues, and its year-over-year sales decline improved to 8% from about 20% in the first quarter after the acquisition. Schrock said that integration remains on track for completion by mid-next year.

A ROTH Capital Partners analyst asked what is driving the improvement. Erica Wei said that the first two quarters centered on combining teams, systems, processes and operations.

Wei also added that some new products are already being introduced, with a broader pickup expected over several quarters. She pointed to the Noble House timeline, where product activity generally took three to four quarters to build.

GigaCloud Faces Freight and Competitive QuestionsService gross margin improved 3.2 percentage points sequentially to 11.7%. Wei attributed the gain to carrier optimization, responsive pricing and favorable ocean freight dynamics under long-term capacity contracts.

A ROTH Capital Partners analyst asked whether higher spot freight rates could keep supporting margins. Wei said that costs are more visible than market pricing, and higher ocean rates can support service margins while pressuring product economics.

A Maxim Group analyst also asked about Amazon's Supply Chain as a Service. Schrock said GigaCloud differentiates through a large-parcel B2B marketplace combined with integrated logistics and a channel-agnostic fulfillment model.

GCT Sets Q3 Range and Keeps Capital FlexibleGigaCloud expects third-quarter revenues of $375-$400 million. Wei said that the outlook includes New Classic and incorporates continued operational stabilization as integration progresses.

The company repurchased about $30 million of shares during the quarter and another $18 million afterward. It then replaced the prior authorization with a new three-year, $120 million repurchase program.

On M&A, Wei said that New Classic remains the near-term priority. Longer term, she said that GigaCloud could consider distribution businesses, technology additions or European logistics assets, with strategic fit and integration demands guiding decisions.

GigaCloud Maintains a Disciplined Growth PostureLarry Wu centered his remarks on profitable growth, operational adaptability and controlled expansion. He said GigaCloud intends to keep scaling its marketplace while using its balance sheet and cash generation to support long-term opportunities.

Wu's emphasis, alongside CFO Erica Wei's integration and capital-allocation commentary, kept the near-term focus on Europe, New Classic and disciplined deployment of resources in a challenging furniture environment.

GCT's Zacks Rank and Style ScoresGCT carries a Zacks Rank #3 (Hold). Its Value Score of A and VGM Score of B are the stronger Style Score readings, while its Growth Score of C and Momentum Score of D present a more mixed profile.

The Zacks Style Score is designed to complement the Zacks Rank, with the strongest combinations centered on Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks paired with A or B scores. Because the Rank is driven by earnings-estimate revisions, it can change as analysts update estimates after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here.

GigaCloud Technology Inc. (GCT - Free Report) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +36.47%. A quarter ago, it was expected that this company would post earnings of $0.87 per share when it actually produced earnings of $1.04, delivering a surprise of +19.54%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

GigaCloud Technology Inc., which belongs to the Zacks Technology Services industry, posted revenues of $411.64 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.28%. This compares to year-ago revenues of $322.61 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

GigaCloud Technology Inc. shares have added about 17.7% since the beginning of the year versus the S&P 500's gain of 12.8%.

What's Next for GigaCloud Technology Inc.?While GigaCloud Technology Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for GigaCloud Technology Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.10 on $380.5 million in revenues for the coming quarter and $4.18 on $1.53 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Keel Infrastructure Corp (KEEL - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.

This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -300%. The consensus EPS estimate for the quarter has been revised 6.3% higher over the last 30 days to the current level.

Keel Infrastructure Corp's revenues are expected to be $34.95 million, down 55.1% from the year-ago quarter.

EL MONTE, Calif., Aug. 06, 2026 (GLOBE NEWSWIRE) -- GigaCloud Technology Inc (Nasdaq: GCT) (“GigaCloud” or the “Company”), a pioneer of global end-to-end B2B technology solutions for large parcel merchandise, today announced financial results for the second quarter and six months ended June 30, 2026, reporting record second quarter revenue and earnings per share over the comparable prior year period.

Key Takeaways GigaCloud is expected to post Q2 revenue growth of 18.9%, while earnings fall 6.6% year over year. Lower U.S. furniture demand, ocean-service volumes and service margins may weigh on GCT's top line. Fuel, delivery, integration and expansion costs could pressure GigaCloud's profitability and margins. GigaCloud Technology Inc. (GCT - Free Report) is set to report its second-quarter 2026 earnings on Aug. 6, before the market opens.

The bottom-line estimate for the soon-to-be-reported quarter has remained flat at 85 cents per share over the past 60 days. The consensus mark indicates a decline of 6.6% year over year. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $383.7 million, which indicates a rise of 18.9% year over year.

The company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 57.4%.

GCT’s Expectations This Time AroundGCT’s top-line in the to-be reported quarter is expected to have been affected by a downturn in the U.S. furniture demand, lower ocean-service volumes and pressure on service margins. Rising fuel and delivery costs are also likely to have weighed on profitability.

The ongoing geopolitical tensions in the Middle East and supply-chain disruptions are likely to have weighed on its June-end quarter results. Inflationary pressures and fuel price volatility are also expected to have posed additional headwinds.

Moreover, the New Classic’s integration-related disruptions and unfavorable purchasing terms are expected to have hurt growth and margins. Vietnam flooding, inventory delays and higher expansion-related expenses are likely to have added further pressure.

What Our Model Says About GCTOur proven Zacks model does not conclusively predict an earnings beat for GCT this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. But that's not the case here.

GCT currently has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to ConsiderHere are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Enpro Inc. (NPO - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $322.9 million, indicating 12.1% year-over-year growth. The consensus estimate for earnings is pegged at $2.30 per share, implying a 13.3% rise from the year-ago quarter’s actual. The company beat the consensus estimate in each of the trailing four quarters, with an average surprise of 1.95%.

NPO has an Earnings ESP of +0.87% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to declare its second-quarter 2026 results on Aug. 4.

Thomson Reuters (TRI - Free Report) : The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $1.91 billion, implying a 7.26% rise year over year. For earnings, the consensus mark is pegged at 96 cents per share, indicating a rise of 9.1% year over year. The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 3.1%.

TRI currently has an Earnings ESP of +2.35% and a Zacks Rank #2.

The company is set to declare its second-quarter 2026 results on Aug. 5.

July 30, 2026 08:00 ET  | Source: GigaCloud Technology

EL MONTE, Calif., July 30, 2026 (GLOBE NEWSWIRE) -- GigaCloud Technology Inc (Nasdaq: GCT) (“GigaCloud” or the “Company”), a pioneer of global end-to-end B2B technology solutions for large parcel merchandise, today announced that it will report financial results for the 2026 second quarter ended June 30, 2026 before the market opens on Thursday, August 6, 2026. The Company will host a conference call to discuss its financial results on the same day at 8:00 AM Eastern Time.

To access the conference call, participants should pre-register here to receive the dial-in information and a unique PIN. All participants are encouraged to dial-in 15 minutes prior to the conference call’s start time.

A live and archived webcast of the conference call will be accessible on the Company’s investor relations website at https://investors.gigacloudtech.com/news-events/events.

About GigaCloud Technology Inc
GigaCloud Technology Inc is a pioneer of global end-to-end B2B ecommerce technology solutions for large parcel merchandise. The Company’s B2B ecommerce platform, which it refers to as the “GigaCloud Marketplace,” integrates everything from discovery, payments and logistics tools into one easy-to-use platform. The Company’s global marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia and Europe, to execute cross-border transactions with confidence, speed and efficiency. The Company offers a truly comprehensive solution that transports products from the manufacturer’s warehouse to the end customer’s doorstep, all at one fixed price. The Company first launched its marketplace in January 2019 by focusing on the global furniture market and has since expanded into additional categories such as home appliances and fitness equipment. For more information, please visit the Company’s website: https://investors.gigacloudtech.com/.

For investor and media inquiries, please contact:

GigaCloud Technology Inc
[email protected]

Pondel Wilkinson Inc.
Laurie Berman (Investors)                Todd Kehrli (Investors)                        
[email protected]                     [email protected]

George Medici (Media)
[email protected]

GigaCloud Technology Inc. (GCT - Free Report) closed the most recent trading day at $40.26, moving +2.78% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq lost 0.22%.

Heading into today, shares of the company had gained 20.86% over the past month, outpacing the Business Services sector's gain of 3.09% and the S&P 500's gain of 1.7%.

The upcoming earnings release of GigaCloud Technology Inc. will be of great interest to investors. In that report, analysts expect GigaCloud Technology Inc. to post earnings of $0.85 per share. This would mark a year-over-year decline of 6.59%. In the meantime, our current consensus estimate forecasts the revenue to be $383.7 million, indicating a 18.94% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.18 per share and a revenue of $1.53 billion, signifying shifts of +16.43% and +18.96%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for GigaCloud Technology Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, GigaCloud Technology Inc. boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, GigaCloud Technology Inc. is currently exchanging hands at a Forward P/E ratio of 9.37. For comparison, its industry has an average Forward P/E of 16.96, which means GigaCloud Technology Inc. is trading at a discount to the group.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

GigaCloud Technology Inc. (GCT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this company have returned +12.8% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Technology Services industry, to which GigaCloud Technology Inc. belongs, has lost 3% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, GigaCloud Technology Inc. is expected to post earnings of $0.85 per share, indicating a change of -6.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $4.18 points to a change of +16.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $4.83 indicates a change of +15.6% from what GigaCloud Technology Inc. is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for GigaCloud Technology Inc..

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of GigaCloud Technology Inc., the consensus sales estimate of $383.7 million for the current quarter points to a year-over-year change of +18.9%. The $1.53 billion and $1.65 billion estimates for the current and next fiscal years indicate changes of +19% and +7.5%, respectively.

Last Reported Results and Surprise HistoryGigaCloud Technology Inc. reported revenues of $359.49 million in the last reported quarter, representing a year-over-year change of +32.2%. EPS of $1.04 for the same period compares with $0.68 a year ago.

Compared to the Zacks Consensus Estimate of $344.9 million, the reported revenues represent a surprise of +4.23%. The EPS surprise was +19.54%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

GigaCloud Technology Inc. is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about GigaCloud Technology Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

GigaCloud Technology Inc. (GCT - Free Report) ended the recent trading session at $35.40, demonstrating a +2.88% change from the preceding day's closing price. This change outpaced the S&P 500's 0.79% loss on the day. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 1.55%.

The company's stock has climbed by 0.91% in the past month, falling short of the Business Services sector's gain of 4.59% and the S&P 500's gain of 4.28%.

The investment community will be closely monitoring the performance of GigaCloud Technology Inc. in its forthcoming earnings report. The company is forecasted to report an EPS of $0.85, showcasing a 6.59% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $383.7 million, showing a 18.94% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.18 per share and a revenue of $1.53 billion, signifying shifts of +16.43% and +18.96%, respectively, from the last year.

Any recent changes to analyst estimates for GigaCloud Technology Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. GigaCloud Technology Inc. is currently a Zacks Rank #3 (Hold).

Investors should also note GigaCloud Technology Inc.'s current valuation metrics, including its Forward P/E ratio of 8.23. Its industry sports an average Forward P/E of 16.97, so one might conclude that GigaCloud Technology Inc. is trading at a discount comparatively.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 45% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

GigaCloud (GCT) is deeply undervalued despite double-digit revenue and earnings growth, a pristine balance sheet, and a unique, scalable B2B logistics platform. GCT's operational efficiency, expanding international presence, and robust free cash flow yield above 10% underpin its competitive advantage and margin stability. Management prioritizes profitable growth, maintains gross margins near 24%, and actively returns capital via buybacks, with over $77M remaining under the current program.