The latest trading session saw Reddit Inc. (RDDT) ending at $165.91, denoting a +1.51% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.
Shares of the company have appreciated by 5.97% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.86% and the S&P 500's loss of 2.36%.
Analysts and investors alike will be keeping a close eye on the performance of Reddit Inc. in its upcoming earnings disclosure.
Investors should also note any recent changes to analyst estimates for Reddit Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 23.2% upward. At present, Reddit Inc. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Reddit Inc. is presently being traded at a Forward P/E ratio of 249.51. This valuation marks a premium compared to its industry's average Forward P/E of 27.8.
It's also important to note that RDDT currently trades at a PEG ratio of 6.94. 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. RDDT's industry had an average PEG ratio of 2.03 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 26, finds itself in the top 11% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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