Reddit Inc. (RDDT) Stock Declines While Market Improves: Some Information for Investors

In the latest trading session, Reddit Inc. (RDDT) closed at $157.03, marking a -1.45% move from the previous day. This move lagged the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq gained 1.02%. Shares of the company witnessed a gain of 34.79% over the previous month, beating the performance of the Computer and Technology sector with its gain of 8.25%, and the S&P 500's gain of 4.99%.Market participants will be closely following the financial results of Reddit Inc. in its upcoming release. On that day, Reddit Inc. is projected to report earnings of $0.19 per share, which would represent year-over-year growth of 416.67%. Alongside, our most recent consensus estimate is anticipating revenue of $426.39 million, indicating a 51.64% upward movement from the same quarter last year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.21 per share and a revenue of $1.85 billion, signifying shifts of +136.34% and +42.07%, respectively, from the last year. Investors should also take note of any recent adjustments to analyst estimates for Reddit Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.28% lower. Reddit Inc. currently has a Zacks Rank of #3 (Hold). Looking at valuation, Reddit Inc. is presently trading at a Forward P/E ratio of 132.08. Its industry sports an average Forward P/E of 28.74, so one might conclude that Reddit Inc. is trading at a premium comparatively. Also, we should mention that RDDT has a PEG ratio of 4.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.22 as of yesterday's close. The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons 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. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Don’t Miss Out on These Stocks Before you make your next investing move, we have a free report that highlights the %%CTA_TEXT%% to buy.Our experts at Zacks Investment Research hand-selected these stocks for their eye-opening growth projections.Since 1988, our stock picks have more than doubled the S&P 500 with an average gain of +23.89% per year using the Zacks Rank stock-rating system.Register now to see the %%CTA_TEXT%%.7 best stocksWant 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