Reddit Inc. (RDDT) closed at $181.99 in the latest trading session, marking a -0.95% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.53% for the day. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.22%.
Shares of the company have appreciated by 3.57% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.02% and the S&P 500's gain of 2.69%.
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 February 12, 2025.
Investors should also note any recent changes to analyst estimates for Reddit Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 moved 8.29% higher. Reddit Inc. currently has a Zacks Rank of #2 (Buy).
In the context of valuation, Reddit Inc. is at present trading with a Forward P/E ratio of 259.03. Its industry sports an average Forward P/E of 29.37, so one might conclude that Reddit Inc. is trading at a premium comparatively.
It is also worth noting that RDDT currently has a PEG ratio of 6.43. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.27.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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