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Reddit Inc. (RDDT) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Reddit Inc. (RDDT - Free Report) closed at $149.38, marking a -3.29% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.58% for the day. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
Shares of the company have depreciated by 2.68% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.12%, and the S&P 500's loss of 0.36%.
Analysts and investors alike will be keeping a close eye on the performance of Reddit Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.33, signifying a 66.25% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $886.87 million, indicating a 51.62% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.27 per share and revenue of $3.39 billion, indicating changes of +101.15% and +54.05%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.97% upward. At present, Reddit Inc. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 29.3. For comparison, its industry has an average Forward P/E of 20.46, which means Reddit Inc. is trading at a premium to the group.
Also, we should mention that RDDT has a PEG ratio of 0.71. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 35% of all 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.
To follow RDDT in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Reddit Inc. (RDDT) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Reddit Inc. (RDDT - Free Report) closed at $149.38, marking a -3.29% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.58% for the day. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
Shares of the company have depreciated by 2.68% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.12%, and the S&P 500's loss of 0.36%.
Analysts and investors alike will be keeping a close eye on the performance of Reddit Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.33, signifying a 66.25% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $886.87 million, indicating a 51.62% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.27 per share and revenue of $3.39 billion, indicating changes of +101.15% and +54.05%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.97% upward. At present, Reddit Inc. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 29.3. For comparison, its industry has an average Forward P/E of 20.46, which means Reddit Inc. is trading at a premium to the group.
Also, we should mention that RDDT has a PEG ratio of 0.71. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 35% of all 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.
To follow RDDT in the coming trading sessions, be sure to utilize Zacks.com.