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4 주 전
1 ‘Strong Buy’-Rated Penny Stock to Buy in January
Amit Singh - Barchart - Sun Jan 5, 7:00AM CST Columnist
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Businessman pointing arrow graph corporate future growth by Marchmeena29 via iStock
Businessman pointing arrow graph corporate future growth by Marchmeena29 via iStock
While investing in penny stocks, it’s wise to consider analyst ratings. They can serve as a valuable guide, with stocks receiving a “Strong Buy” consensus indicating that industry experts see significant upside potential in them in the long run.
While no investment is without risk, such endorsements from Wall Street can provide an added layer of confidence for those considering investing in penny stocks.
When narrowing down potential investments, I used Barchart’s Stock Screener Tool to identify Grab Holdings (GRAB) as one of the top penny stocks to buy in January. Let’s examine this company more closely.
About Grab Holdings Stock
Grab Holdings (GRAB) has emerged as one of the top players in Southeast Asia’s digital economy, solidifying its position as a leading super app in the region. By seamlessly integrating essential services such as food and grocery deliveries, ride-hailing, package delivery, digital payments, lending, and insurance into a single platform, Grab offers significant convenience for its users. This comprehensive approach continues to drive its user base and financial performance.
www.barchart.com
A Penny Stock With Impressive Financials
The company’s financial results reflect its robust growth trajectory. In the third quarter of 2024, Grab reported a record group adjusted EBITDA of $90 million, marking a remarkable year-over-year increase of over threefold. This milestone reflects the eleventh consecutive quarter of adjusted EBITDA improvement, emphasizing the company's ability to scale profitably.
Engagement on the platform is also on a consistent upward trend. Monthly transacting users (MTUs), a vital metric for measuring platform engagement and growth, surged by 16% year-over-year to 42 million in Q3 2024. This achievement represents six consecutive quarters of sequential growth, showcasing the Grab ecosystem’s growing appeal and utility.
Grab’s disciplined cost management and strategic investments are yielding impressive results. Over the trailing 12 months, the company achieved an adjusted free cash flow of $76 million, aligning with its goal of positive free cash flow for the full fiscal year.
Looking forward to 2025, Grab is focusing on enhancing value for its users and ecosystem partners. The company is deepening its market penetration and expanding its reach within its total addressable market. In Q3, the Deliveries segment showed strong growth, particularly across its Saver and Priority Deliveries services. Similarly, in the Mobility sector, Grab’s High-Value Mobility offerings complement affordability initiatives, ensuring a comprehensive suite of services tailored to diverse user needs.
Cross-selling remains a key driver of growth for Grab. By encouraging GrabFood users to explore GrabMart, the company has achieved remarkable success, with GrabMart growing at nearly double the pace of GrabFood while maintaining profitability. Users who engage with both services demonstrate significantly higher transaction frequency — almost five times that of GrabFood-only users —and exhibit more than twice as high retention rates. These dynamics enhance user engagement and strengthen relationships with ecosystem partners.
Grab’s financial services offerings, delivered through GrabFin and its digital banks, are also witnessing solid growth. In Q3 2024, Grab’s consolidated Digital Bank deposits tripled to exceed $1 billion, while total loans disbursed reached a record high of $567 million. These numbers suggest that Grab’s financial services will be a major growth contributor in the years to come.
Technological innovation is another pillar of Grab’s strategy. The company leverages artificial intelligence (AI) to optimize user experiences and improve operational efficiency. With several AI models deployed across its platform, Grab is enhancing service personalization, reducing wait times, and improving safety measures. The integration of Generative AI has also opened new opportunities for its partners, further fueling growth.
Grab’s strong market position, large addressable market, and focus on enhancing convenience through technological innovation and ecosystem development position it for sustained long-term growth. Its emphasis on increasing high-value transactions and robust domestic demand will likely drive its financials and expand its user base in 2025 and beyond. Further, with its improving operating leverage and focus on delivering sustainable free cash flow, Grab is poised to generate solid shareholder returns.
What Analysts Think About GRAB Stock
Wall Street analysts share a positive outlook, giving Grab a “Strong Buy” consensus rating. As Grab continues to evolve, its focus on technological innovation, operational efficiency, and ecosystem development ensures it will remain at the forefront of Southeast Asia’s digital transformation
www.barchart.com
On the date of publication, Amit Singh did not have (either directly or indirectly
Pisd
9 월 전
“We continued to drive profitable growth in the first quarter, as we achieved another record Adjusted EBITDA,” said Peter Oey, Chief Financial Officer of Grab. “As we drive growth across our business, we remain focused on continued improvements in profitability as demonstrated by our ninth consecutive quarter of Group Adjusted EBITDA expansion while improving shareholder returns and managing our balance sheet. Pursuant to our $500 million share repurchase program, we have repurchased approximately $97 million worth of Class A ordinary shares in March, and also paid down the remaining $497 million balance of our Term Loan B.”
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