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Grab Holdings Limited (GRAB) Suffers a Larger Drop Than the General Market: Key Insights

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The latest trading session saw Grab Holdings Limited (GRAB - Free Report) ending at $4.58, denoting a -1.29% adjustment from its last day's close. This change lagged the S&P 500's 0.51% loss on the day. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.28%.

The company's stock has dropped by 2.11% in the past month, falling short of the Business Services sector's gain of 6.38% and the S&P 500's gain of 2.87%.

The investment community will be paying close attention to the earnings performance of Grab Holdings Limited in its upcoming release. On that day, Grab Holdings Limited is projected to report earnings of $0.01 per share, which would represent no growth from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $762.57 million, indicating a 16.78% growth compared to the corresponding quarter of the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Grab Holdings Limited. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.56% downward. Right now, Grab Holdings Limited possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Grab Holdings Limited is currently being traded at a Forward P/E ratio of 81.88. This indicates a premium in contrast to its industry's Forward P/E of 24.08.

Investors should also note that GRAB has a PEG ratio of 1.93 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. Technology Services stocks are, on average, holding a PEG ratio of 1.62 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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