3 Undervalued Stocks Poised for Growth Amid Market Volatility

Market volatility has left many investors seeking safe havens with asymmetric upside. Below are three companies—Grab Holdings (GRB), Sarepta Therapeutics (SRPT), and Jabil Inc. (JBL)—that offer compelling valuations and strategic advantages, positioning them to thrive in uncertain conditions. Each leverages sector-specific tailwinds and robust cash flow metrics to justify their inclusion in a risk-adjusted portfolio.

1. Grab Holdings (GRB): Southeast Asia's Digital Ecosystem at a Discount

Why Buy Now?
Grab is Asia's answer to Uber and DoorDash, dominating ride-hailing, food delivery, and financial services across eight Southeast Asian markets. Its Q1 2025 results underscore its transition to profitability:
- Revenue rose 18% YoY to $773M, driven by record-high GMV in Deliveries and Mobility.
- Adjusted EBITDA hit $106M, a $44M YoY increase, signaling margin expansion.
- Cash liquidity stands at $6.2B, with net cash of $5.9B, providing a fortress balance sheet.

Valuation Edge
Grab's enterprise value (EV) is ~$19.4B (market cap + debt), while its EV/EBITDA ratio—calculated using its $460–480M 2025 guidance—is ~4.2x, far below peers like Uber (EV/EBITDA of ~9x). This reflects both its cash-rich position and underappreciated growth in financial services.

Growth Catalysts
- AI-Driven Ecosystem: Grab's AI tools are boosting delivery efficiency and personalizing financial products.
- Banking Penetration: GXS Bank and GX Bank now hold $1.43B in customer deposits, up from $153M in 2024, signaling strong demand for its digital banking platform.
- Regulatory Tailwind: Southeast Asia's push for digital payments and green mobility aligns with Grab's expansion into e-scooters and fintech.

2. Sarepta Therapeutics (SRPT): Biotech Innovation at a Critical Inflection Point

Why Buy Now?
Sarepta is a rare-disease biotech with a pipeline of therapies for muscular dystrophies and other genetic disorders. Despite recent volatility, its $3.58B market cap undervalues its long-term potential:
- Revenue surged 80% YoY in Q1 2025 to $745M, led by ELEVIDYS, which treats Duchenne muscular dystrophy (DMD).
- Cash reserves remain robust at $648M, even after a $773M R&D investment in its Arrowhead collaboration.

Valuation Edge
While its EV/EBITDA of 46x may seem high, its forward P/E of 10.9x (based on 2025 guidance) highlights a valuation reset as it moves from R&D-heavy losses to commercialization.

Growth Catalysts
- ELEVIDYS Dominance: Expanded label approval in 2024 and two-year data showing stabilized muscle function position it as a market leader.
- LGMD Pipeline: SRP-9003's planned 2025 FDA submission for limb-girdle muscular dystrophy (LGMD) could unlock a $2B+ market.
- Arrowhead Synergy: Four new programs (including therapies for DM1 and FSHD1) could diversify revenue beyond DMD.

3. Jabil Inc. (JBL): Manufacturing Resilience with Hidden Margin Upside

Why Buy Now?
Jabil is a global manufacturing powerhouse, benefiting from secular trends in AI, healthcare, and supply chain diversification. Its Q1 2025 results show:
- Adjusted free cash flow (AFFC) of $226M, with a full-year target of $1.2B.
- Debt-to-EBITDA of 1.4x, among the lowest in the sector, enabling aggressive share buybacks ($232M in Q1 alone).

Valuation Edge
At an EV/EBITDA of 6.0x, JBL trades at a ~40% discount to peers like Flex Ltd. (EV/EBITDA of ~10x). This undervaluation ignores its margin improvement roadmap:
- Margin Expansion: Q1 2025's 5% core margin is set to rise to 5.4% by year-end, driven by AI-driven automation and cost cuts.

Growth Catalysts
- Healthcare Pivot: The $1.4B acquisition of CDMO Pii gives Jabil access to $15B+ pharmaceutical manufacturing markets.
- AI Infrastructure Boom: Its Intelligent Infrastructure segment (cloud/data center) grew 5% YoY, with AI-related revenue now at $6.5B.
- Geopolitical Hedge: 100+ global factories and a $2.1B cash pile ensure resilience against supply chain shocks.

Conclusion: Buy These Three Before the Market Catches On

Grab's cash-rich expansion, Sarepta's pipeline inflection, and Jabil's margin-driven resilience all point to asymmetric upside. Each offers a discounted valuation relative to peers, paired with catalysts that could unlock multiyear growth. Investors seeking stability and growth in volatile markets should act now before these opportunities narrow.

Portfolio Action:
- Allocate 10%–15% of a risk-adjusted portfolio to GRB, SRPT, and JBL.
- Monitor near-term triggers: Grab's Q2 GMV growth, Sarepta's SRP-9003 data, and Jabil's Q2 margin targets.

The time to capitalize on these undervalued champions is now.