Core Viewpoint - Reddit Inc. is experiencing significant growth in both stock performance and earnings projections, indicating strong investor interest and positive market sentiment. Group 1: Stock Performance - Reddit Inc. shares closed at $270.71, reflecting a +1.59% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.48% [1] - Over the past month, Reddit's stock has gained 22.03%, surpassing the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 2.46% [1] Group 2: Earnings Projections - Reddit Inc. is projected to report earnings of $0.5 per share, representing a year-over-year growth of 212.5% [2] - The consensus estimate for quarterly revenue is $549.69 million, which is an increase of 57.8% from the same period last year [2] - Full-year estimates predict earnings of $1.82 per share and revenue of $2.05 billion, indicating year-over-year changes of +154.65% and +57.36%, respectively [3] Group 3: Analyst Estimates and Rankings - Recent changes in analyst estimates for Reddit Inc. reflect positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Reddit Inc. as 1 (Strong Buy), indicating strong expected performance [6] - Over the past month, there has been a 0.78% rise in the Zacks Consensus EPS estimate for Reddit Inc. [6] Group 4: Valuation Metrics - Reddit Inc. has a Forward P/E ratio of 146.48, which is significantly higher than the industry average of 31.99 [7] - The company holds a PEG ratio of 4.19, compared to the Internet-Software industry's average PEG ratio of 2.27, suggesting a premium valuation relative to expected earnings growth [8] Group 5: Industry Context - The Internet-Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]
Reddit Inc. (RDDT) Outperforms Broader Market: What You Need to Know