In the latest trading session, Reddit Inc. (RDDT) closed at $210.13, marking a -6.76% move from the previous day. This move lagged the S&P 500's daily gain of 1.16%. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.18%.
Shares of the company have depreciated by 0.2% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.07%, and the S&P 500's loss of 0.42%.
The upcoming earnings release of Reddit Inc. will be of great interest to investors. The company's earnings report is expected on February 5, 2026. The company's earnings per share (EPS) are projected to be $0.97, reflecting a 169.44% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $667.58 million, indicating a 56.08% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.35 per share and revenue of $2.14 billion, which would represent changes of +170.57% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Reddit Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 past month, the Zacks Consensus EPS estimate remained stagnant. Reddit Inc. presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Reddit Inc. is presently trading at a Forward P/E ratio of 58.43. For comparison, its industry has an average Forward P/E of 22.98, which means Reddit Inc. is trading at a premium to the group.
It's also important to note that RDDT currently trades at a PEG ratio of 1.51. 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 1.39 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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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