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Reddit Inc. (RDDT) Dips More Than Broader Market: What You Should Know
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Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $254.29, moving -2.4% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, added 0.45%.
Shares of the company have appreciated by 7.01% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.42%, and the S&P 500's gain of 3.44%.
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 $0.49, reflecting a 206.25% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $549.59 million, showing a 57.77% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.81 per share and a revenue of $2.04 billion, demonstrating changes of +154.35% and +57.25%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Reddit Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Reddit Inc. boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Reddit Inc. is holding a Forward P/E ratio of 144.34. For comparison, its industry has an average Forward P/E of 32, which means Reddit Inc. is trading at a premium to the group.
Meanwhile, RDDT's PEG ratio is currently 4.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.25.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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) Dips More Than Broader Market: What You Should Know
Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $254.29, moving -2.4% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, added 0.45%.
Shares of the company have appreciated by 7.01% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.42%, and the S&P 500's gain of 3.44%.
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 $0.49, reflecting a 206.25% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $549.59 million, showing a 57.77% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.81 per share and a revenue of $2.04 billion, demonstrating changes of +154.35% and +57.25%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Reddit Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Reddit Inc. boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Reddit Inc. is holding a Forward P/E ratio of 144.34. For comparison, its industry has an average Forward P/E of 32, which means Reddit Inc. is trading at a premium to the group.
Meanwhile, RDDT's PEG ratio is currently 4.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.25.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.