Why Grab Holdings Limited (GRAB) Dipped More Than Broader Market Today

Grab Holdings Limited (GRAB) closed at $3.68 in the latest trading session, marking a -1.87% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.28%.

The stock of company has fallen by 15.73% in the past month, lagging the Computer and Technology sector's loss of 2.12% and the S&P 500's loss of 3.59%.

The upcoming earnings release of Grab Holdings Limited will be of great interest to investors. On that day, Grab Holdings Limited is projected to report earnings of $0.03 per share, which would represent year-over-year growth of 200%. In the meantime, our current consensus estimate forecasts the revenue to be $927.37 million, indicating a 19.97% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.09 per share and a revenue of $4.07 billion, indicating changes of +50% and +20.76%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Grab Holdings Limited. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Grab Holdings Limited holds a Zacks Rank of #3 (Hold).

In terms of valuation, Grab Holdings Limited is presently being traded at a Forward P/E ratio of 41.67. This signifies a premium in comparison to the average Forward P/E of 19.27 for its industry.

Investors should also note that GRAB has a PEG ratio of 0.84 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.09.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 40% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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

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