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Here's Why Reddit Inc. (RDDT) Fell More Than Broader Market
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In the latest trading session, Reddit Inc. (RDDT - Free Report) closed at $156.14, marking a -2.02% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 2.15%.
The company's shares have seen an increase of 4.27% over the last month, surpassing the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
Investors will be eagerly watching for the performance of Reddit Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2026. 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 Zacks Consensus Estimate for revenue is projecting net sales of $886.35 million, up 51.54% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $3.4 billion, which would represent changes of +101.15% and +54.16%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Reddit Inc. is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Reddit Inc. is currently being traded at a Forward P/E ratio of 30.23. This valuation marks a premium compared to its industry average Forward P/E of 21.23.
Meanwhile, RDDT's PEG ratio is currently 0.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.25.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Here's Why Reddit Inc. (RDDT) Fell More Than Broader Market
In the latest trading session, Reddit Inc. (RDDT - Free Report) closed at $156.14, marking a -2.02% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 2.15%.
The company's shares have seen an increase of 4.27% over the last month, surpassing the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
Investors will be eagerly watching for the performance of Reddit Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2026. 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 Zacks Consensus Estimate for revenue is projecting net sales of $886.35 million, up 51.54% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $3.4 billion, which would represent changes of +101.15% and +54.16%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Reddit Inc. is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Reddit Inc. is currently being traded at a Forward P/E ratio of 30.23. This valuation marks a premium compared to its industry average Forward P/E of 21.23.
Meanwhile, RDDT's PEG ratio is currently 0.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.25.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.