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Here's Why Investors Should Give GRAB Stock a Miss Right Now

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Key Takeaways

  • GRAB's earnings estimates have been sharply cut for the current quarter and for 2025.
  • Grab shares have fallen 18.6% this quarter, underperforming the broader industry.
  • GRAB is weighed down by higher operating costs, tariff volatility and rising regional rivals.

Grab (GRAB - Free Report) is facing mounting pressure from increased expenses. Tariff-related woes and increased competition are also hurting the company’s prospects, making it an unattractive choice for investors’ portfolios.

GRAB: Key Risks to Watch

Southward Earnings Estimate Revision: The Zacks Consensus Estimate for current quarter earnings has been revised more than 100% downward in the past 60 days. Meanwhile, for 2025, the consensus mark for earnings has been revised 20% downward in the same time frame.

The unfavorable estimate revision indicates brokers’ lack of confidence in the stock.

Dim Price Performance:  The company’s price trend reveals that its shares have plunged 18.6% in the quarter-to-date period compared with the Internet-Software industry’s 16.2% decline.

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Weak Zacks Rank: GRAB currently has a Zacks Rank #4 (Sell).

Unimpressive Earnings Surprise History: The company’s earnings surprise history is discouraging as it underperformed the Zacks Consensus Estimate in two of the trailing four quarters and met twice in the remaining two, delivering an average miss of 29.17%.

Headwinds: GRAB is mired in significant challenges, dampening the company’s prospects. The increased expenses are weighing on Grab’s bottom line. In the third quarter of 2025, the total operating expenses rose 1.14% year over year and continued to remain at an elevated level of $355 million.

Moreover, companies like GRAB are navigating a volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions.

Increased competition continues to challenge Grab’s deliveries segment, with regional players like Foodpanda, ShopeeFood and Gojek in Indonesia, along with strong single-market rivals such as Deliveroo in Singapore and Line Man Wongnai and Robinhood in Thailand.

Stocks to Consider

Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington (EXPD - Free Report) and SkyWest (SKYW - Free Report) .

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

EXPD has an expected earnings growth rate of 2.3% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.94%.

SKYW currently carries a Zacks Rank #2 (Buy).

SkyWest has an expected earnings growth rate of 33% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.2%.


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Expeditors International of Washington, Inc. (EXPD) - free report >>

SkyWest, Inc. (SKYW) - free report >>

Grab Holdings Limited (GRAB) - free report >>

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