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In the latest market close, Grab Holdings Limited (GRAB) reached $4.64, with a -0.43% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.53% for the day. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 0.22%.
Heading into today, shares of the company had lost 5.67% over the past month, lagging the Business Services sector's gain of 1.06% and the S&P 500's gain of 2.69% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Grab Holdings Limited in its upcoming earnings disclosure. The company is expected to report EPS of $0, down 100% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $756.6 million, indicating a 15.86% growth compared to the corresponding quarter of the prior year.
It is also important to note the recent changes to analyst estimates for Grab Holdings Limited. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate remained stagnant. Grab Holdings Limited is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Grab Holdings Limited is presently being traded at a Forward P/E ratio of 77.67. This denotes a premium relative to the industry's average Forward P/E of 24.12.
One should further note that GRAB currently holds a PEG ratio of 1.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. GRAB's industry had an average PEG ratio of 1.56 as of yesterday's close.
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 assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.