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Reddit Inc. (RDDT) Gains As Market Dips: What You Should Know
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Reddit Inc. (RDDT - Free Report) closed at $162.38 in the latest trading session, marking a +2.92% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.48%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 0.56%.
The company's stock has dropped by 11.41% in the past month, falling short of the Computer and Technology sector's gain of 1.49% and the S&P 500's loss of 0.82%.
The investment community will be paying close attention to the earnings performance of Reddit Inc. in its upcoming release. It is anticipated that the company will report an EPS of $1.33, marking a 66.25% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $886.87 million, up 51.62% from the year-ago period.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 0.97% higher within the past month. Reddit Inc. presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 29.92. This signifies a premium in comparison to the average Forward P/E of 19.75 for its industry.
Also, we should mention that RDDT has a PEG ratio of 0.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Reddit Inc. (RDDT) Gains As Market Dips: What You Should Know
Reddit Inc. (RDDT - Free Report) closed at $162.38 in the latest trading session, marking a +2.92% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.48%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 0.56%.
The company's stock has dropped by 11.41% in the past month, falling short of the Computer and Technology sector's gain of 1.49% and the S&P 500's loss of 0.82%.
The investment community will be paying close attention to the earnings performance of Reddit Inc. in its upcoming release. It is anticipated that the company will report an EPS of $1.33, marking a 66.25% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $886.87 million, up 51.62% from the year-ago period.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 0.97% higher within the past month. Reddit Inc. presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 29.92. This signifies a premium in comparison to the average Forward P/E of 19.75 for its industry.
Also, we should mention that RDDT has a PEG ratio of 0.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.