#3 - GrubHub (NYSE:GRUB)
You might be noting a theme here. And you’ll either think I’m insane, or maybe I’m onto something. GrubHub (NYSE:GRUB) has been a pandemic winner because food delivery became an essential service.
But here again, we find a stock that’s down 18% in the last month. In fairness, GRUB stock is approaching a price that provided support back in September. And with mitigation measures being heightened in many states, the stock may be poised for a Santa Claus rally.
But there are some fundamental problems that investors shouldn’t ignore. Yes, GrubHub has picked up exciting partnerships with Dunkin Brands (NASDAQ:DNKN), Pizza Hut, and Taco Bell - both of which are affiliated with Yum! Brands (NYSE:YUM). However, the company is likely to increase its marketing spend, which could squeeze already tight margins. Plus, the market for food delivery is highly competitive. This is a market going through a wave of consolidation, which always makes valuing stocks tricky.
GrubHub did receive a catalyst when the California ballot initiative forced companies like DoorDash to classify its drivers as employees failed. But that hasn’t had much effect on the stock, which suggests investors were already factoring that outcome into the stock’s price.
About Just Eat Takeaway.com
Just Eat Takeaway.com N.V. operates an online food delivery marketplace. The company focuses on connecting consumers and restaurants through its platforms. It serves in the United Kingdom, Germany, Canada, the Netherlands, Australia, Austria, Belgium, Bulgaria, Denmark, France, Ireland, Israel, Italy, Luxembourg, New Zealand, Norway, Poland, Portugal, Romania, Spain, and Switzerland, as well as through partnerships in Colombia and Brazil.
Read More - Current Price
- $61.05
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
