Grid Dynamics Rises on S&P SmallCap 600 Inclusion

Grid Dynamics provides digital engineering and information technology services focused on complex technical consulting, software design, development, testing, AI, and internet service operations. It’s built its biggest billable engineering staff ever due to high demand and operational capacity. Also, recent corporate acquisitions have helped GDYN build its AI capabilities and win more business with the large hyperscalers dominating cloud computing.

As for its finances, GDYN achieved record quarterly revenue and profitability in 2024’s third quarter. Revenue jumped 12.9% to $87.4 million, which beat consensus expectations. Fourth-quarter revenue is projected to be up to $97 million, which would be a 24% year-over-year rise. GDYN had per-share earnings of $0.05 for the quarter, which is up from $0.01 a year prior. The sustained corporate growth drove the company to be included in the S&P SmallCap 600 index, which will happen on Jan. 2.

It’s no wonder GDYN shares are up 69% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loves Grid Dynamics

Institutional volumes reveal plenty. In the last year, GDYN has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in GDYN shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Grid Dynamics.

Grid Dynamics Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, GDYN has strong sales growth and low debt:

• 3-year sales growth rate (+45.9%)
• Debt/equity ratio (+2.9%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +25.6%.

Now it makes sense why the stock has been powering to new heights. GDYN has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Grid Dynamics has been a top-rated stock at MAPsignals for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times recently, with more potentially on the horizon. The blue bars below show when GDYN was a top pick…making shares jump:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Grid Dynamics Price Prediction

The GDYN rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in GDYN at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.