Reddit Inc. (RDDT) closed at $164.82 in the latest trading session, marking a +0.1% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.12%. Meanwhile, the Dow experienced a rise of 0.52%, and the technology-dominated Nasdaq saw a decrease of 0.23%.

The company's stock has dropped by 7.55% in the past month, falling short of the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45%.

The upcoming earnings release of Reddit Inc. will be of great interest to investors.

Investors should also note any recent changes to analyst estimates for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 witnessed a 3.05% increase. Right now, Reddit Inc. possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Reddit Inc. is currently trading at a Forward P/E ratio of 243.91. This valuation marks a premium compared to its industry's average Forward P/E of 27.61.

We can also see that RDDT currently has a PEG ratio of 6.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.05.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 34, placing it within the top 14% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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 Report

To read this article on Zacks.com click here.

Zacks Investment Research