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Reddit Inc. (RDDT) Dips More Than Broader Market: What You Should Know
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Reddit Inc. (RDDT - Free Report) closed at $169.45 in the latest trading session, marking a -3.15% move from the prior day. This change lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq lost 1.33%.
Coming into today, shares of the company had gained 23.5% in the past month. In that same time, the Computer and Technology sector gained 4.52%, while the S&P 500 gained 2.02%.
The upcoming earnings release of Reddit Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $0.99, marking a 120% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $746.89 million, indicating a 49.49% growth compared to the corresponding quarter of the prior year.
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.
Investors might also notice recent changes to analyst estimates for Reddit Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained stagnant. Currently, Reddit Inc. is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Reddit Inc. is at present trading with a Forward P/E ratio of 36.2. Its industry sports an average Forward P/E of 18.33, so one might conclude that Reddit Inc. is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.
View the Zacks #1 Rank List
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Reddit Inc. (RDDT) Dips More Than Broader Market: What You Should Know
Reddit Inc. (RDDT - Free Report) closed at $169.45 in the latest trading session, marking a -3.15% move from the prior day. This change lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq lost 1.33%.
Coming into today, shares of the company had gained 23.5% in the past month. In that same time, the Computer and Technology sector gained 4.52%, while the S&P 500 gained 2.02%.
The upcoming earnings release of Reddit Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $0.99, marking a 120% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $746.89 million, indicating a 49.49% growth compared to the corresponding quarter of the prior year.
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.
Investors might also notice recent changes to analyst estimates for Reddit Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained stagnant. Currently, Reddit Inc. is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Reddit Inc. is at present trading with a Forward P/E ratio of 36.2. Its industry sports an average Forward P/E of 18.33, so one might conclude that Reddit Inc. is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.