Grab Holdings Limited (NASDAQ:GRAB) attracted attention after gaining more than 15%. The gains are due to revenue growth. This comes after the company barely grabbed attention late last year in an IPO. Our analysis shows that the stock could be on newfound bullish momentum hence a buy.
The company was founded in 2012. It has invested in a super-app for everyday use in ride-hailing, ordering food, and fintech. The stock gives its holders exposure to emerging markets. The company does business in more than eight countries in South-East Asia.
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The attention grabber for the company is the strong growth projected on the company’s earnings. The company recorded a loss of 6.37 per share in the last financial year. This year, the stock is expected to return a profit with an EPS of $0.25. This makes Grab Holdings a growth stock that is worth considering.
Grab Holdings Limited gains as bullish momentum builds
Grab Holdings is a penny stock. It is trading at $3.06 and has support at $2.50. The resistance would appear to be at $4.00. The stock has been consolidating between the two levels since the beginning of March. The RSI has been close to 30 since March. This is an indication that Grab Holdings could be considered oversold. The impact is that the stock would set off a rally to find a new high.
The highest price that the company traded at was $18.11, while the lowest was $2.31. The current valuation is closer to the historical low for the stock. There is greater potential for gains than losing.
Summary
Grab Holdings Limited is a strong buy. The stock has a lot of potential for gains. The analysis also shows the company expects robust EPS growth.
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