Reddit Inc. (RDDT) Laps the Stock Market: Here's Why

In the latest close session, Reddit Inc. (RDDT) was up +1.91% at $200.82. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.89%. The company's stock has dropped by 16.39% in the past month, falling short of the Computer and Technology sector's loss of 0.5% and the S&P 500's gain of 0.16%.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 30, 2025. It is anticipated that the company will report an EPS of $0.52, marking a 225% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $549.69 million, indicating a 57.8% increase compared to the same quarter of the previous year. RDDT's full-year Zacks Consensus Estimates are calling for earnings of $1.87 per share and revenue of $2.06 billion. These results would represent year-over-year changes of +156.16% and +58.6%, respectively. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Reddit Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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, 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 a 3.04% increase. Reddit Inc. presently features a Zacks Rank of #1 (Strong Buy). Digging into valuation, Reddit Inc. currently has a Forward P/E ratio of 105.12. This valuation marks a premium compared to its industry average Forward P/E of 29.4. We can also see that RDDT currently has a PEG ratio of 3.01. 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 2.11 based on yesterday's closing prices. The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual 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. To follow RDDT in the coming trading sessions, be sure to utilize Zacks.com. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reddit Inc. (RDDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks