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Reddit Inc. (RDDT) Stock Slides as Market Rises: Facts to Know Before You Trade
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Reddit Inc. (RDDT - Free Report) ended the recent trading session at $244.56, demonstrating a -3.7% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.65% for the day. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.82%.
The stock of company has risen by 8.74% in the past month, leading the Computer and Technology sector's loss of 1.6% and the S&P 500's gain of 1.15%.
Investors will be eagerly watching for the performance of Reddit Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.97, reflecting a 169.44% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $668.52 million, up 56.3% from the year-ago period.
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 0%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Reddit Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. Reddit Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 65.84. This signifies a premium in comparison to the average Forward P/E of 24.73 for its industry.
Investors should also note that RDDT has a PEG ratio of 1.71 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Reddit Inc. (RDDT) Stock Slides as Market Rises: Facts to Know Before You Trade
Reddit Inc. (RDDT - Free Report) ended the recent trading session at $244.56, demonstrating a -3.7% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.65% for the day. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.82%.
The stock of company has risen by 8.74% in the past month, leading the Computer and Technology sector's loss of 1.6% and the S&P 500's gain of 1.15%.
Investors will be eagerly watching for the performance of Reddit Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.97, reflecting a 169.44% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $668.52 million, up 56.3% from the year-ago period.
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 0%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Reddit Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. Reddit Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 65.84. This signifies a premium in comparison to the average Forward P/E of 24.73 for its industry.
Investors should also note that RDDT has a PEG ratio of 1.71 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.