Reddit Inc. (RDDT) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest trading session, Reddit Inc. (RDDT) closed at $142.52, marking a -1.24% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.54%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.74%. Prior to today's trading, shares of the company had gained 2.23% lagged the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%.Analysts and investors alike will be keeping a close eye on the performance of Reddit Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on July 31, 2025. The company is predicted to post an EPS of $0.19, indicating a 416.67% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $426.39 million, up 51.64% from the year-ago period. RDDT's full-year Zacks Consensus Estimates are calling for earnings of $1.21 per share and revenue of $1.85 billion. These results would represent year-over-year changes of +136.34% and +42.07%, respectively. It is also important to note the recent changes 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. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Reddit Inc. presently features a Zacks Rank of #4 (Sell). Investors should also note Reddit Inc.'s current valuation metrics, including its Forward P/E ratio of 119.62. This valuation marks a premium compared to its industry average Forward P/E of 28.39. We can also see that RDDT currently has a PEG ratio of 3.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock'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 industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Should You Invest in Reddit Inc. (RDDT)?Before you invest in Reddit Inc. (RDDT), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)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