We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reddit Inc. (RDDT) Stock Slides as Market Rises: Facts to Know Before You Trade
Read MoreHide Full Article
In the latest trading session, Reddit Inc. (RDDT - Free Report) closed at $150.84, marking a -1.3% move from the previous day. This change lagged the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq increased by 0.4%.
Heading into today, shares of the company had gained 1.68% over the past month, outpacing the Computer and Technology sector's gain of 0.37% and the S&P 500's loss of 1.29%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.3, marking a 62.5% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $886.35 million, indicating a 51.54% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.27 per share and a revenue of $3.4 billion, signifying shifts of +101.15% and +54.16%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Reddit Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.97% higher. Reddit Inc. is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Reddit Inc. is presently trading at a Forward P/E ratio of 28.99. This indicates a premium in contrast to its industry's Forward P/E of 20.16.
It's also important to note that RDDT currently trades at a PEG ratio of 0.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.14 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Reddit Inc. (RDDT) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest trading session, Reddit Inc. (RDDT - Free Report) closed at $150.84, marking a -1.3% move from the previous day. This change lagged the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq increased by 0.4%.
Heading into today, shares of the company had gained 1.68% over the past month, outpacing the Computer and Technology sector's gain of 0.37% and the S&P 500's loss of 1.29%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.3, marking a 62.5% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $886.35 million, indicating a 51.54% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.27 per share and a revenue of $3.4 billion, signifying shifts of +101.15% and +54.16%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Reddit Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.97% higher. Reddit Inc. is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Reddit Inc. is presently trading at a Forward P/E ratio of 28.99. This indicates a premium in contrast to its industry's Forward P/E of 20.16.
It's also important to note that RDDT currently trades at a PEG ratio of 0.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.14 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.