In the latest close session, Reddit Inc. (RDDT) was down 1.82% at $143.00. This change lagged the S&P 500's 0.28% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.09%.
Prior to today's trading, shares of the company had gained 26.62% outpaced the Computer and Technology sector's gain of 6.2% and the S&P 500's gain of 4.37%.
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 July 31, 2025. The company's earnings per share (EPS) are projected to be $0.19, reflecting a 416.67% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $426.39 million, showing a 51.64% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.21 per share and revenue of $1.85 billion, indicating changes of +136.34% and +42.07%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Reddit Inc. is currently sporting a Zacks Rank of #4 (Sell).
Looking at valuation, Reddit Inc. is presently trading at a Forward P/E ratio of 120.73. This denotes a premium relative to the industry average Forward P/E of 29.03.
It is also worth noting that RDDT currently has a PEG ratio of 3.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.24.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Reddit Inc. (RDDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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