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Reddit Inc. (RDDT) Stock Slides as Market Rises: Facts to Know Before You Trade
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Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $109.91, moving -0.17% from the previous trading session. This change lagged the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.
The company's stock has dropped by 41.16% in the past month, falling short of the Computer and Technology sector's loss of 13.17% and the S&P 500's loss of 8.26%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.02, marking a 93.1% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $374.53 million, up 54.15% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.16 per share and revenue of $1.83 billion, which would represent changes of +134.83% and +40.43%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Reddit Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has shifted 3.56% upward. Reddit Inc. currently has a Zacks Rank of #2 (Buy).
In the context of valuation, Reddit Inc. is at present trading with a Forward P/E ratio of 94.55. This denotes a premium relative to the industry's average Forward P/E of 27.36.
Meanwhile, RDDT's PEG ratio is currently 2.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.06 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Reddit Inc. (RDDT) Stock Slides as Market Rises: Facts to Know Before You Trade
Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $109.91, moving -0.17% from the previous trading session. This change lagged the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.
The company's stock has dropped by 41.16% in the past month, falling short of the Computer and Technology sector's loss of 13.17% and the S&P 500's loss of 8.26%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.02, marking a 93.1% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $374.53 million, up 54.15% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.16 per share and revenue of $1.83 billion, which would represent changes of +134.83% and +40.43%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Reddit Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has shifted 3.56% upward. Reddit Inc. currently has a Zacks Rank of #2 (Buy).
In the context of valuation, Reddit Inc. is at present trading with a Forward P/E ratio of 94.55. This denotes a premium relative to the industry's average Forward P/E of 27.36.
Meanwhile, RDDT's PEG ratio is currently 2.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.06 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.