We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reddit Inc. (RDDT) Exceeds Market Returns: Some Facts to Consider
Read MoreHide Full Article
Reddit Inc. (RDDT - Free Report) closed at $136.18 in the latest trading session, marking a +1.14% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.72%. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 1.16%.
Shares of the company witnessed a loss of 7.58% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.35%, and the S&P 500's loss of 4.99%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. The company is forecasted to report an EPS of $0.62, showcasing a 376.92% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $614.09 million, indicating a 56.51% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.02 per share and revenue of $3.16 billion, which would represent changes of +53.44% and +43.44%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Reddit Inc. currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Reddit Inc. is holding a Forward P/E ratio of 33.48. This indicates a premium in contrast to its industry's Forward P/E of 19.24.
Meanwhile, RDDT's PEG ratio is currently 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.06 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 38% 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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Reddit Inc. (RDDT) Exceeds Market Returns: Some Facts to Consider
Reddit Inc. (RDDT - Free Report) closed at $136.18 in the latest trading session, marking a +1.14% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.72%. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 1.16%.
Shares of the company witnessed a loss of 7.58% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.35%, and the S&P 500's loss of 4.99%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. The company is forecasted to report an EPS of $0.62, showcasing a 376.92% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $614.09 million, indicating a 56.51% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.02 per share and revenue of $3.16 billion, which would represent changes of +53.44% and +43.44%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Reddit Inc. currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Reddit Inc. is holding a Forward P/E ratio of 33.48. This indicates a premium in contrast to its industry's Forward P/E of 19.24.
Meanwhile, RDDT's PEG ratio is currently 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.06 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 38% 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.