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Reddit Inc. (RDDT) Falls More Steeply Than Broader Market: What Investors Need to Know
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The latest trading session saw Reddit Inc. (RDDT - Free Report) ending at $115.03, denoting a -1.76% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.27%.
The stock of company has risen by 3.77% in the past month, lagging the Computer and Technology sector's gain of 11.99% and the S&P 500's gain of 6.9%.
The upcoming earnings release of Reddit Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.19, reflecting a 416.67% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $426.3 million, reflecting a 51.61% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.21 per share and revenue of $1.85 billion, indicating changes of +136.34% and +42.01%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Reddit Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% lower. Reddit Inc. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Reddit Inc. is presently being traded at a Forward P/E ratio of 97.06. This indicates a premium in contrast to its industry's Forward P/E of 29.06.
Also, we should mention that RDDT has a PEG ratio of 3.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.29.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow RDDT in the coming trading sessions, be sure to utilize Zacks.com.
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Reddit Inc. (RDDT) Falls More Steeply Than Broader Market: What Investors Need to Know
The latest trading session saw Reddit Inc. (RDDT - Free Report) ending at $115.03, denoting a -1.76% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.27%.
The stock of company has risen by 3.77% in the past month, lagging the Computer and Technology sector's gain of 11.99% and the S&P 500's gain of 6.9%.
The upcoming earnings release of Reddit Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.19, reflecting a 416.67% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $426.3 million, reflecting a 51.61% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.21 per share and revenue of $1.85 billion, indicating changes of +136.34% and +42.01%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Reddit Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% lower. Reddit Inc. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Reddit Inc. is presently being traded at a Forward P/E ratio of 97.06. This indicates a premium in contrast to its industry's Forward P/E of 29.06.
Also, we should mention that RDDT has a PEG ratio of 3.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.29.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow RDDT in the coming trading sessions, be sure to utilize Zacks.com.