Reddit Inc. (RDDT) closed the most recent trading day at $180.27, moving -5.15% from the previous trading session. This move lagged the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.94%.
Coming into today, shares of the company had lost 17.32% in the past month. In that same time, the Computer and Technology sector gained 1.51%, while the S&P 500 gained 0.89%.
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 5, 2026. The company is expected to report EPS of $0.96, up 166.67% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $667.58 million, showing a 56.08% escalation compared to the year-ago quarter.
RDDT's full-year Zacks Consensus Estimates are calling for earnings of $2.32 per share and revenue of $2.14 billion. These results would represent year-over-year changes of +169.67% and 0%, respectively.
Investors might also notice recent changes to analyst estimates for Reddit Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.18% lower. At present, Reddit Inc. boasts a Zacks Rank of #4 (Sell).
Digging into valuation, Reddit Inc. currently has a Forward P/E ratio of 50.9. This signifies a premium in comparison to the average Forward P/E of 22.8 for its industry.
We can additionally observe that RDDT currently boasts a PEG ratio of 1.32. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.32.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Reddit Inc. (RDDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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