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Reddit Inc. (RDDT) Increases Despite Market Slip: Here's What You Need to Know
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In the latest trading session, Reddit Inc. (RDDT - Free Report) closed at $205.92, marking a +1.12% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 0.67%.
The stock of company has fallen by 11.46% in the past month, lagging the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.52, up 225% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $549.69 million, up 57.8% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.87 per share and a revenue of $2.05 billion, representing changes of +156.16% and +57.36%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Reddit Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.78% higher. Reddit Inc. is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Reddit Inc. currently has a Forward P/E ratio of 108.63. This represents a premium compared to its industry average Forward P/E of 30.
Also, we should mention that RDDT has a PEG ratio of 3.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.35 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 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.
To follow RDDT in the coming trading sessions, be sure to utilize Zacks.com.
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Reddit Inc. (RDDT) Increases Despite Market Slip: Here's What You Need to Know
In the latest trading session, Reddit Inc. (RDDT - Free Report) closed at $205.92, marking a +1.12% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 0.67%.
The stock of company has fallen by 11.46% in the past month, lagging the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.52, up 225% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $549.69 million, up 57.8% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.87 per share and a revenue of $2.05 billion, representing changes of +156.16% and +57.36%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Reddit Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.78% higher. Reddit Inc. is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Reddit Inc. currently has a Forward P/E ratio of 108.63. This represents a premium compared to its industry average Forward P/E of 30.
Also, we should mention that RDDT has a PEG ratio of 3.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.35 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 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.
To follow RDDT in the coming trading sessions, be sure to utilize Zacks.com.