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Reddit Inc. (RDDT) Laps the Stock Market: Here's Why
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Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $203.68, moving +2.58% from the previous trading session. This change outpaced the S&P 500's 1.56% gain on the day. At the same time, the Dow added 1.29%, and the tech-heavy Nasdaq gained 2.21%.
The company's shares have seen a decrease of 21.92% over the last month, not keeping up with the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 0.41%.
Market participants will be closely following the financial results of Reddit Inc. in its upcoming release. The company plans to announce its earnings on October 30, 2025. The company is predicted to post an EPS of $0.52, indicating a 225% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $549.69 million, up 57.8% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.87 per share and revenue of $2.06 billion, indicating changes of +156.16% and +58.59%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Reddit Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.85% increase. Currently, Reddit Inc. is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Reddit Inc. is presently trading at a Forward P/E ratio of 105.92. This denotes a premium relative to the industry average Forward P/E of 28.54.
Meanwhile, RDDT's PEG ratio is currently 3.03. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Reddit Inc. (RDDT) Laps the Stock Market: Here's Why
Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $203.68, moving +2.58% from the previous trading session. This change outpaced the S&P 500's 1.56% gain on the day. At the same time, the Dow added 1.29%, and the tech-heavy Nasdaq gained 2.21%.
The company's shares have seen a decrease of 21.92% over the last month, not keeping up with the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 0.41%.
Market participants will be closely following the financial results of Reddit Inc. in its upcoming release. The company plans to announce its earnings on October 30, 2025. The company is predicted to post an EPS of $0.52, indicating a 225% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $549.69 million, up 57.8% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.87 per share and revenue of $2.06 billion, indicating changes of +156.16% and +58.59%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Reddit Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.85% increase. Currently, Reddit Inc. is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Reddit Inc. is presently trading at a Forward P/E ratio of 105.92. This denotes a premium relative to the industry average Forward P/E of 28.54.
Meanwhile, RDDT's PEG ratio is currently 3.03. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.