Reddit Inc. (RDDT) closed at $198.93 in the latest trading session, marking a -1.52% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.25%.
Coming into today, shares of the company had gained 23.59% in the past month. In that same time, the Computer and Technology sector lost 0.75%, while the S&P 500 gained 1.24%.
Market participants will be closely following the financial results of Reddit Inc. in its upcoming release. The company plans to announce its earnings on February 12, 2025.
Any recent changes to analyst estimates for Reddit Inc. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, there's been a 17.79% rise in the Zacks Consensus EPS estimate. At present, Reddit Inc. boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Reddit Inc. is holding a Forward P/E ratio of 261.8. This represents a premium compared to its industry's average Forward P/E of 30.73.
We can additionally observe that RDDT currently boasts a PEG ratio of 6.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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