12 Best Software Stocks to Buy According to Analysts

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1. GigaCloud Technology Inc. (NASDAQ:GCT)

Stock Price: $19.79

Number of Hedge Fund Holders: 13

Analyst Upside Potential: 200.66%

GigaCloud Technology Inc. (NASDAQ:GCT) is a software company that provides B2B technology solutions for large parcel merchandise. It runs an online marketplace called GigaCloud Marketplace which helps businesses find products, make payments, and manage shipping all in one place. The company mainly targets the Asian market with resellers in regions such as the United States and Europe.

The company has been experiencing significant growth in its business. During the fiscal third quarter of 2024, the Gross Merchandise Volume (GMV) for GigaCloud Marketplace increased by over 80%, reaching approximately $1.23 billion for the trailing 12 months ending September 30, 2024. Moreover, the company also surpasses 1000 active third-party sellers, while growing its buyers by 85.5% year-over-year.

GigaCloud Technology Inc. (NASDAQ:GCT) has already seen substantial growth in Europe, with revenue increasing by 140% year-over-year in Q3 2024. Looking ahead management plans to enhance participation in its marketplace by expanding geographically and improving marketing efforts to attract more 3P sellers and buyers. They also plan to onboard brick-and-mortar retailers and enhance product categories to drive buyer engagement.

While we acknowledge the potential of GigaCloud Technology Inc. (NASDAQ:GCT) to grow, our conviction lies in the belief that 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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