Up 72% Year-to-Date, How Much Higher Can This Surging Small-Cap Stock Rise?

After lagging their mega-cap peers in 2023, many market-watchers were ready for small-cap stocks to stage a comeback in 2024. But so far, the benchmark Russell 2000 Index (RUT) of small-cap companies has yet to gain any positive momentum, down 2.4% so far year-to-date compared to the 4.4% return of the S&P 500 Index ($SPX).

However, not all small-caps are struggling - and in fact, some of these names are even blowing away the performance of standout stocks like Nvidia (NVDA) with their year-to-date price action. 

Here, we'll focus on one specific stock that's been outperforming the broader market by a significant margin over the past year - and how now outpaced even the most bullish predictions of Wall Street analysts. 

GigaCloud Technology Stock Outperforms

Headquartered in California with offices in Hong Kong, GigaCloud Technology Inc. (GCT) is shaking things up in the ecommerce industry, offering business-to-business solutions for freight, warehousing, and fulfillment. Their business model leverages artificial intelligence (AI) and machine learning to help both manufacturers and resellers navigate supply chain logistics. 

GCT's stock has been on a roll over the past year. The stock is up 529% over the past 52 weeks, and GCT has nearly tripled in value over the past six months. The company is now valued at $1.28 billion by market cap.

Gigacloud Technology Beats on Earnings

Gigacloud reported its Q3 results on Nov. 30, with earnings of $0.59 per share blowing past the expected $0.38 by a mile. Revenue of $178.17 million also surpassed consensus estimates, as spend per active buyer increased 28.5% year-over-year to $148,793 during the 12 months ended Sept. 30, 

Late last year, Gigacloud also closed on two acquisitions that should support growth - an $85 million asset purchase from Noble House Home Furnishings, and the $10 million cash purchase of digital catalog software specialist Wondersign.

For the year ahead, Wall Street analysts expect GCT to report EPS growth of 34.82%, while revenue is projected to rise by more than 32% in fiscal 2024 to $904.55 million. The company's next earnings release is set for mid-March.

What Do Analysts Expect for GCT Stock?

GCT has yet to attract much of a following on Wall Street, with only two experts tracking the stock. Both of them have a “Strong Buy” opinion on the ecommerce stock - but after the stock's massive rally, GCT is now trading above its Street-high price target of $26.00. 

Priced at 1.43 times 2024 sales, Gigacloud stock isn't too expensive at current levels. However, with the shares technically overbought, the risk of a short-term pullback could be higher than usual.