Author's Note: Reddit RDDT was last featured on 12/10 when it closed at 167.17. It has gained 16.50% since then. It is featured today because it just hit another All Time High.
Summary
Reddit RDDT hit another all-time high, gaining 16.50% since last featured, driven by strong technical buy signals and consistent price appreciation.
Barchart's technical indicators show 100% buy signals, a Trend Seeker buy signal, and the stock trading above its 20, 50, and 100-day moving averages.
Fundamental factors include a $31.75 billion market cap, expected revenue growth of 36.71%, and earnings growth of 40.37% next year.
Analysts' opinions are mixed, with 11 strong buys but also some sell ratings, and the stock is considered highly volatile and speculative.
The Chart of the Day belongs to the Internet & content company Reddit (RDDT) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 1/21 the stock gained 3.41%.
RDDT Price vs Daily Moving Averages:
Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 322.21+ Weighted Alpha
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 5 new highs and up 12.22% in the last month
- Relative Strength Index 67.42%
- Technical support level at $185.43
- Recently traded at $194.75 with 50 day moving average of $162.11
Fundamental Factors:
- Market Cap $31.75 billion
- Revenue expected to increase another 36.71% next year
- Earnings estimated to increase an additional 40.37% next year
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 11 strong buy, 1 buy, 6 hold and 1 sell opinion on the stock
- Their price targets between $85 and $215
- Value Line has price targets between $90 and $155 and comments:" This stock is priced for perfection. The equity now trades at a price-to-sales multiple north of 20, compared with the average price-to-sales measure of between 3 and 5. We project considerable growth in revenues and earnings per share here in the years ahead."
- CFRAs MarketScope rates the stock a sell
- MorningStar thinks the stock is 60% over valued
- 14,740 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
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On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.