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Why Reddit Inc. (RDDT) Dipped More Than Broader Market Today
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Reddit Inc. (RDDT - Free Report) closed at $138.12 in the latest trading session, marking a -3.27% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. At the same time, the Dow lost 0.44%, and the tech-heavy Nasdaq lost 0.28%.
Heading into today, shares of the company had lost 3.17% over the past month, lagging the Computer and Technology sector's loss of 2.12% and outpacing the S&P 500's loss of 3.59%.
Analysts and investors alike will be keeping a close eye on the performance of Reddit Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.62, reflecting a 376.92% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $614.09 million, up 56.51% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.02 per share and revenue of $3.16 billion, indicating changes of +53.44% and +43.44%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Reddit Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.1% upward. Reddit Inc. is currently a Zacks Rank #3 (Hold).
In the context of valuation, Reddit Inc. is at present trading with a Forward P/E ratio of 35.5. Its industry sports an average Forward P/E of 19.27, so one might conclude that Reddit Inc. is trading at a premium comparatively.
We can additionally observe that RDDT currently boasts a PEG ratio of 1.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 40% of over 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.
To follow RDDT in the coming trading sessions, be sure to utilize Zacks.com.
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Why Reddit Inc. (RDDT) Dipped More Than Broader Market Today
Reddit Inc. (RDDT - Free Report) closed at $138.12 in the latest trading session, marking a -3.27% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. At the same time, the Dow lost 0.44%, and the tech-heavy Nasdaq lost 0.28%.
Heading into today, shares of the company had lost 3.17% over the past month, lagging the Computer and Technology sector's loss of 2.12% and outpacing the S&P 500's loss of 3.59%.
Analysts and investors alike will be keeping a close eye on the performance of Reddit Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.62, reflecting a 376.92% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $614.09 million, up 56.51% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.02 per share and revenue of $3.16 billion, indicating changes of +53.44% and +43.44%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Reddit Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.1% upward. Reddit Inc. is currently a Zacks Rank #3 (Hold).
In the context of valuation, Reddit Inc. is at present trading with a Forward P/E ratio of 35.5. Its industry sports an average Forward P/E of 19.27, so one might conclude that Reddit Inc. is trading at a premium comparatively.
We can additionally observe that RDDT currently boasts a PEG ratio of 1.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 40% of over 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.
To follow RDDT in the coming trading sessions, be sure to utilize Zacks.com.