10 Cheap Software Stocks to Buy According to Analysts

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1. GigaCloud Technology Inc. (NASDAQ:GCT)

Forward P/E Ratio: 4.92

Analyst Upside: 86.48%

GigaCloud Technology Inc. (NASDAQ:GCT) is a pioneer in worldwide end-to-end B2B technology solutions for large parcels. The company’s B2B e-commerce platform, the GigaCloud Marketplace, unifies everything from discovery, payments, and logistical technologies into one simple platform.

GigaCloud Tech reported total revenues of $1.16 billion for 2024, a 65% increase over the previous year. Gross profit increased also by 51.2% to $285.2 million, while the company’s net income jumped 33.7% to $125.8 million. On the other hand, the company’s gross margin fell to 24.6% from 26.8% in 2023, and its net income margin dropped to 10.8% from 13.4% the previous year.

Moving forward, GigaCloud’s management underlined the need for global diversity and operational efficiency in driving long-term success. Larry Wu, founder and CEO of GigaCloud, stated that gross merchandise value in Europe increased 155% year on year, highlighting the broad popularity of GigaCloud’s Supplier Fulfilled Retail (SFR) model.

While we acknowledge the potential of GCT, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GCT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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