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Grab Holdings Limited (GRAB) Dips More Than Broader Market: What You Should Know

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Grab Holdings Limited (GRAB - Free Report) closed the most recent trading day at $3.15, moving -1.41% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.06%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq depreciated by 0.44%.

Shares of the company have appreciated by 4.59% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.85%, and outperforming the S&P 500's gain of 2.36%.

The upcoming earnings release of Grab Holdings Limited will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.02, reflecting a 100% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.07 billion, indicating a 22.94% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.14 per share and revenue of $4.22 billion, which would represent changes of +133.33% and +25.3%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Grab Holdings Limited. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.62% higher. Grab Holdings Limited is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Grab Holdings Limited is currently trading at a Forward P/E ratio of 22.39. This represents a premium compared to its industry average Forward P/E of 20.96.

It is also worth noting that GRAB currently has a PEG ratio of 0.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.21.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 39% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GRAB in the coming trading sessions, be sure to utilize Zacks.com.

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