Artificial intelligence-powered logistics leader GigaCloud Technology is Monday's pick for IBD 50 Growth Stocks To Watch. The AI stock is setting up in a base ahead of its scheduled earnings report Thursday.
GigaCloud Technology stock popped around 8% Monday and is on track for its fourth straight day of gains. The company's GigaCloud Marketplace is a global business-to-business, or B2B, e-commerce logistics platform.
The end-to-end experience connects suppliers and resellers. It provides cross-border transactions, payments and logistics solutions for bulky merchandise.
GigaCloud partners with ocean freight shippers, operates 16 U.S. warehouses and provides flat-rate fulfillment services powered by AI machine learning. Its AI technology collects real time market trend data to provide market analysis, optimizes inventory levels and analyzes customer behavior.
AI Stock Climbs Ahead Of Earnings
GigaCloud Technology stock is in an irregular base with a 45.18 buy point, according to MarketSurge pattern recognition. The base began forming after the stock surged 23.3% in heavy volume. That followed the company's beat on its fourth quarter earnings and sales estimates on March 15.
But the stock reversed lower and sold over a three-day period. It closed below its 50-day moving average on March 20.
Shares reclaimed the 50-day line on April 1 with one more violation of the key level before its current four-day jump. The AI stock topped the 40 level on Monday for the first time in the base and cleared a trend line. Shares gained around 119% year to date compared with the Nasdaq composite's 8%.
GigaCloud Technology stock started trading shares on the Nasdaq exchange on Aug. 17, 2022, with an initial price of 12.25.
GigaCloud Earnings On Tap Thursday
GigaCloud's fourth-quarter earnings grew a whopping 181%. That came on the heels of three quarters of triple-digit profit growth. Its sales growth accelerated to 95% from 23% and 39% in the prior two periods.
Analysts polled by FactSet expect first quarter earnings of 51 cents a share, or 31% growth, with a 60% and 36% increase in the following two quarters. Analysts forecast 90% revenue growth in the first quarter, then slow to 77% and 56% in the following two quarters.
Full-year estimates call for profit growth of 26% this year and 25% in 2025. GigaCloud is due to report first quarter earnings May 9 before the market opens.
The AI stock holds a trifecta of best-possible 99 scores on its Composite, Earnings Per Share and Relative Strength ratings from Investor's Business Daily.
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