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Reddit Inc. (RDDT) Outpaces Stock Market Gains: What You Should Know
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In the latest close session, Reddit Inc. (RDDT - Free Report) was up +2.55% at $158.48. This move outpaced the S&P 500's daily gain of 0.8%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 1.6%.
Heading into today, shares of the company had gained 7.07% over the past month, lagging the Computer and Technology sector's gain of 7.62% and outpacing the S&P 500's gain of 5.15%.
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 report is set to go public on April 30, 2026. The company is expected to report EPS of $0.62, up 376.92% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $614.09 million, indicating a 56.51% increase compared to the same quarter of the previous year.
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.
Investors should also note any recent changes to analyst estimates for Reddit Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained unchanged. Currently, Reddit Inc. is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 38.42. This expresses a premium compared to the average Forward P/E of 18.47 of its industry.
Meanwhile, RDDT's PEG ratio is currently 1.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.05 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Reddit Inc. (RDDT) Outpaces Stock Market Gains: What You Should Know
In the latest close session, Reddit Inc. (RDDT - Free Report) was up +2.55% at $158.48. This move outpaced the S&P 500's daily gain of 0.8%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 1.6%.
Heading into today, shares of the company had gained 7.07% over the past month, lagging the Computer and Technology sector's gain of 7.62% and outpacing the S&P 500's gain of 5.15%.
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 report is set to go public on April 30, 2026. The company is expected to report EPS of $0.62, up 376.92% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $614.09 million, indicating a 56.51% increase compared to the same quarter of the previous year.
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.
Investors should also note any recent changes to analyst estimates for Reddit Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained unchanged. Currently, Reddit Inc. is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 38.42. This expresses a premium compared to the average Forward P/E of 18.47 of its industry.
Meanwhile, RDDT's PEG ratio is currently 1.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.05 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.