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Reddit Inc. (RDDT) Stock Falls Amid Market Uptick: What Investors Need to Know
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Reddit Inc. (RDDT - Free Report) closed at $147.86 in the latest trading session, marking a -1.12% move from the prior day. This change lagged the S&P 500's 0.73% gain on the day. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 1.19%.
The company's shares have seen a decrease of 4.14% over the last month, not keeping up with the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of Reddit Inc. in its upcoming earnings disclosure. 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, our latest consensus estimate is calling for revenue of $886.35 million, up 51.54% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.27 per share and revenue of $3.4 billion. These totals would mark changes of +101.15% and +54.16%, respectively, from last year.
Any recent changes to analyst estimates for Reddit Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Reddit Inc. is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Reddit Inc. is presently being traded at a Forward P/E ratio of 28.36. This denotes a premium relative to the industry average Forward P/E of 19.59.
It's also important to note that RDDT currently trades at a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 1.17 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 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.
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) Stock Falls Amid Market Uptick: What Investors Need to Know
Reddit Inc. (RDDT - Free Report) closed at $147.86 in the latest trading session, marking a -1.12% move from the prior day. This change lagged the S&P 500's 0.73% gain on the day. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 1.19%.
The company's shares have seen a decrease of 4.14% over the last month, not keeping up with the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of Reddit Inc. in its upcoming earnings disclosure. 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, our latest consensus estimate is calling for revenue of $886.35 million, up 51.54% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.27 per share and revenue of $3.4 billion. These totals would mark changes of +101.15% and +54.16%, respectively, from last year.
Any recent changes to analyst estimates for Reddit Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Reddit Inc. is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Reddit Inc. is presently being traded at a Forward P/E ratio of 28.36. This denotes a premium relative to the industry average Forward P/E of 19.59.
It's also important to note that RDDT currently trades at a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 1.17 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.