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Reddit Inc. (RDDT) Declines More Than Market: Some Information for Investors
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Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $173.45, moving -5.69% from the previous trading session. This change lagged the S&P 500's 2.65% loss on the day. Meanwhile, the Dow lost 1.35%, and the Nasdaq, a tech-heavy index, lost 4.18%.
Shares of the company have appreciated by 12.17% over the course of the past month, outperforming the Computer and Technology sector's gain of 10.37%, and the S&P 500's gain of 5.47%.
The investment community will be paying close attention to the earnings performance of Reddit Inc. in its upcoming release. The company is expected to report EPS of $0.99, up 120% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $746.89 million, up 49.49% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.83 per share and revenue of $3.25 billion. These totals would mark changes of +84.35% and +47.64%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Reddit Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.05% higher. As of now, Reddit Inc. holds a Zacks Rank of #3 (Hold).
Looking at valuation, Reddit Inc. is presently trading at a Forward P/E ratio of 38.05. This indicates a premium in contrast to its industry's Forward P/E of 18.84.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Reddit Inc. (RDDT) Declines More Than Market: Some Information for Investors
Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $173.45, moving -5.69% from the previous trading session. This change lagged the S&P 500's 2.65% loss on the day. Meanwhile, the Dow lost 1.35%, and the Nasdaq, a tech-heavy index, lost 4.18%.
Shares of the company have appreciated by 12.17% over the course of the past month, outperforming the Computer and Technology sector's gain of 10.37%, and the S&P 500's gain of 5.47%.
The investment community will be paying close attention to the earnings performance of Reddit Inc. in its upcoming release. The company is expected to report EPS of $0.99, up 120% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $746.89 million, up 49.49% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.83 per share and revenue of $3.25 billion. These totals would mark changes of +84.35% and +47.64%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Reddit Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.05% higher. As of now, Reddit Inc. holds a Zacks Rank of #3 (Hold).
Looking at valuation, Reddit Inc. is presently trading at a Forward P/E ratio of 38.05. This indicates a premium in contrast to its industry's Forward P/E of 18.84.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.