10 Best US Stocks to Buy Under $5

4. Grab Holdings Limited (NASDAQ:GRAB)

Number of Hedge Fund Holders: 34

Current Share Price: $3.34

Grab Holdings Ltd (NASDAQ:GRAB) is a technology company and operator of a superapp. It offers a Grab ecosystem, a single platform for driver- and merchant partners and consumers that allows access to mobility, delivery, and digital financial services.

Grab Holdings Ltd (NASDAQ:GRAB) is an appealing investment opportunity as one of the best U.S. stocks to buy under $5 due to its dominant market share in Southeast Asia. The company enjoys a near-monopoly status in the area, particularly following its takeover of Uber’s operations in Southeast Asia in 2018.

The acquisitions are already having a significant impact as Grab continues to strengthen the Grab ecosystem and improve usage frequently. In the second quarter, it achieved a new milestone of serving a record high of 41 million monthly transacting users (MTUs) and delivering continued profitable growth at scale.

The company achieved top-line growth across all segments, with On-Demand GMV growing 18% year-over-year. This was driven by strong demand growth of a 22% increase in On-Demand transactions. Revenue rose 17% year-over-year, $664 million. Loss shrunk to $68 million, an improvement of $79 million due to an improvement in Group Adjusted EBITDA.

Furthermore, Grab Holdings Ltd (NASDAQ:GRAB) boasts a robust financial position, having ended Q2 2024 with cash liquidity of $$5.6 billion compared to $5.3 billion as of the first quarter. Consequently, Grab continues to return value to shareholders through buybacks, having bought 9.6 million shares as part of its $500 million program.

Grab Holdings Ltd (NASDAQ:GRAB) maintains a strong financial position, with its balance sheet showing it has more cash than it owes. Additionally, its liquid assets surpass its short-term debts. This gives the company a cushion to keep running and to invest in expansion, even though it hasn’t made a profit in the past year and hasn’t distributed any dividends to its investors.

According to Insider Monkey’s database, 34 hedge funds held stakes in Grab Holdings Ltd (NASDAQ:GRAB) and Tiger Global Management LLC group managed by Chase Coleman and Feroz Dewan has the highest stakes of 92.92 million shares having a value of $329.88 million.