Core Viewpoint - Reddit Inc. (RDDT) has experienced significant selling pressure, resulting in a 41.2% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating a potential turnaround for the stock [1]. Group 1: Technical Analysis - The stock is currently in oversold territory, with a Relative Strength Index (RSI) reading of 28.19, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with a reading below 30 typically indicating an oversold condition [2][3]. Group 2: Fundamental Analysis - Over the last 30 days, the consensus earnings per share (EPS) estimate for RDDT has increased by 3.6%, reflecting a strong agreement among analysts regarding improved earnings prospects [6]. - RDDT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7].
Reddit Inc. (RDDT) Loses -41.16% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner