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Reddit Inc. (RDDT) Falls More Steeply Than Broader Market: What Investors Need to Know
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Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $229.87, moving -1.5% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.74%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.76%.
Prior to today's trading, shares of the company had gained 4.76% outpaced the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
The investment community will be paying close attention to the earnings performance of Reddit Inc. in its upcoming release. The company's upcoming EPS is projected at $0.97, signifying a 169.44% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $668.52 million, up 56.3% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.35 per share and a revenue of $2.15 billion, indicating changes of +170.57% and +65.01%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Reddit Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 a 0.16% decrease. At present, Reddit Inc. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 99.39. For comparison, its industry has an average Forward P/E of 28.86, which means Reddit Inc. is trading at a premium to the group.
Also, we should mention that RDDT has a PEG ratio of 2.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.78.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 51, finds itself in the top 21% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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) Falls More Steeply Than Broader Market: What Investors Need to Know
Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $229.87, moving -1.5% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.74%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.76%.
Prior to today's trading, shares of the company had gained 4.76% outpaced the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
The investment community will be paying close attention to the earnings performance of Reddit Inc. in its upcoming release. The company's upcoming EPS is projected at $0.97, signifying a 169.44% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $668.52 million, up 56.3% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.35 per share and a revenue of $2.15 billion, indicating changes of +170.57% and +65.01%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Reddit Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 a 0.16% decrease. At present, Reddit Inc. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 99.39. For comparison, its industry has an average Forward P/E of 28.86, which means Reddit Inc. is trading at a premium to the group.
Also, we should mention that RDDT has a PEG ratio of 2.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.78.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 51, finds itself in the top 21% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.