GCT vs. NABL: Which Technology Services Stock is Better-Placed Now?

GigaCloud Technology GCT and N-able NABL are notable players in the Zacks Technology Services industry. GigaCloud Technology, headquartered in California, is a leading provider of comprehensive global B2B technology solutions for large-parcel merchandise.

GigaCloud Marketplace, the company’s B2B e-commerce platform, integrates sourcing, payments, and logistics into a single platform. It connects mostly Asian manufacturers with resellers in the United States, Asia and Europe, supporting efficient international transactions and growth.

N-able, based in Burlington, MA, helps businesses defend against an ever-changing cyber threat landscape. The company’s AI-driven cybersecurity platform supports more than 500,000 organizations worldwide, enhancing operational resilience through comprehensive end-to-end capabilities, streamlined workflows, industry-leading integrations, and flexible deployment models that boost efficiency and strengthen security outcomes. With a partner-centric strategy, the company complements its technology with expert guidance, training programs, and peer-led events to better support and empower customers.

Given this backdrop, it is worth examining both companies more closely to determine which technology services stock currently holds an edge—and, more importantly, which one may represent the more compelling investment opportunity at this stage.

The Case for GigaCloud

The ongoing expansion of e-commerce represents a significant tailwind for GigaCloud Technology. A strong 2025 holiday season, fueled by rising online sales, is supporting GCT’s growth. The company is well-positioned to benefit further as its digital services marketplace prepares for the expected acceleration in e-commerce in the current year, driven by higher online commercial activity and the continued expansion of cross-border trade.

Last month, GigaCloud finalized the $18 million acquisition of New Classic Home Furnishings, aimed at strengthening its domestic distribution network. This acquisition reinforces GCT’s strategy of building a channel-agnostic marketplace that improves connectivity between suppliers and retailers. Bringing in New Classic, a wholesaler with a strong brick-and-mortar focus, aligns well with GigaCloud’s objective of diversifying its operations and extending reach beyond e-commerce.

However, ongoing trade tensions pose a notable risk for GCT. Due to the nature of its operations, GigaCloud Technology remains highly exposed to U.S.-China trade frictions and the possibility of higher tariffs. Additionally, high logistics costs, driven by volatile ocean freight rates, increased ground delivery fees, and tariffs, have the capacity to pressurize profit margins.

The Case for N-able

N-able is benefiting from the rising demand for cybersecurity and IT management solutions among Managed Service Providers and their small-to-medium enterprise clients. The company is actively integrating AI into its security portfolio to upgrade its product offerings. This development bodes well for N-able.

N-able delivers cloud-based Remote Monitoring and Management (“RMM”) solutions built for managed service providers (MSPs), allowing them to oversee, control and protect IT environments — including servers, workstations and other devices — from a single, centralized interface.

However, the company faces intense competition, especially from larger, well-established infrastructure providers. In addition, the rapid development of AI-powered tools poses a risk of commoditizing N-able’s primary RMM and security solutions. The decline in  dollar-based net revenue retention rateis a big concern and implies limited customer base expansion potential.

Recently, N-able reported lower-than-expected earnings per share for the fourth quarter of 2025. Results were hurt by elevated acquisition-related costs and expenses associated with the company’s ongoing investments pertaining to product development and market expansion. Revenues marginally surpassed the Zacks Consensus Estimate.

For the first quarter of 2026, the company expects total revenues in the range of $131-$132 million, representing approximately 11% to 12% year-over-year growth on a reported basis and 6% to 7% on a constant currency basis. Adjusted EBITDA is projected in the $35.5 -$36.5 million band.

For full-year 2026, total revenues are projected in the range of $554-$559 million, representing approximately 8% to 9% year-over-year growth on a reported basis and 7% to 8% on a constant currency basis. The Zacks Consensus Estimate is currently pegged at $557.1 million, above the mid-point of the guided range. Adjusted EBITDA is projected in the $167-$171 million range.

Price Performance, Valuation & Earnings History

In a year, NABL shares have performed dismally, declining in double digits (% wise). On the other hand, GCT shares have performed much better, gaining in double digits in the same time frame.

One-Year Price Comparison

NABL is trading at a forward sales multiple of 1.48X, whereas GCT’s forward sales multiple sits at 0.87X, suggesting that NABL shares are pricier.

GCT’s earnings have exceeded the Zacks Consensus Estimate in three of the last four quarters (missing once), with the average surprise being 45.6%. NABL’s earnings per share, too, have exceeded the Zacks Consensus Estimate in three of the last four quarters (missing once). The average beat is 15%.

GigaCloud Technology Inc. Price and EPS Surprise

GigaCloud Technology Inc. price-eps-surprise | GigaCloud Technology Inc. Quote

N-able, Inc. Price and EPS Surprise

N-able, Inc. price-eps-surprise | N-able, Inc. Quote

End Note

NABL is being well-served by the rising demand for cybersecurity and IT management solutions. However, the company is experiencing pressure arising from a shift between on-premise and Software-as-a-Service offerings. The uncertain economic outlook is also a hindrance. Rapid technological changes and increased competition may also hurt the stock, putting it on the back foot. NABL’s unfavorable price performance adds to its list of challenges.

GCT’s strong, debt-free balance sheet, apart from the AI-driven logistics expansion capabilities, bodes well. GigaCloud’s favorable valuation picture and better price performance place it on a more solid footing than N-able.

Considering these factors, GCT appears to be the more attractive choice at this time, even though both stocks currently have a Zacks Rank #3 (Hold).

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

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This article originally published on Zacks Investment Research (zacks.com).

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