Reddit (RDDT)
Down 31% year to date Reddit stock has had a tough couple quarters despite massively improving revenue and earnings. At $166.28 they currently have a 63 PE which is definitely on the high side, and combined with a 29% year over year earnings forecast it makes for a PEG ratio of 2.2 which is quite a bit higher than the S&P’s ratio of 1.8.
| RDDT | |
| Share Price | $166.28 |
| Earnings Per Share | $2.62 |
| EPS (Analyst Forward 1yr) | $3.38 |
| Price to Earnings | 63.5 |
| EPS Growth (Projected 1 yr) | 29.0% |
| PEG | 2.2 |
However, what makes RDDT stock so appealing and so highly rated right now is the fact they have been shattering earnings calls lately and seem to show no sign of slowing down. If they are to continue beating expectations then that 2.2 PEG can very quickly start to find its way down to the 1 mark should Reddit continue to impress over the next couple quarters. And this is certainly possible and I dare say likely: Take a quick glance at their daily active users over time and one thing is abundantly clear – they are continuing to grow users quarter over quarter and that metric seems to be accelerating.
For this reason, we have put Reddit as a medium risk, high reward stock and have it a Strong Buy with a +24% one year price upside. Analysts have also rated Reddit a Strong Buy and they maintain a 67% one year price forecast on average.
Blackrock (BLK)
Blackrock is up 22% in this past year but currently down around 7% in the past 6 months, which presents a great entry point for investors looking to get in at a slight discount to it’s yearly highs. Despite these recent headwinds however, Blackrock is shaping up to have a solid next 4 quarters as analysts are forecasting a near 46% jump in EPS over that time. Given its current earnings multiple of 26, this gives BLK stock a 0.6 PEG ratio right now which is surprisingly good given the nature and maturity of their business model.
| BLK | |
| Share Price | $1,048.42 |
| Earnings Per Share | $39.77 |
| EPS (Analyst Forward 1yr) | $57.99 |
| Price to Earnings | 26.4 |
| EPS Growth (Projected 1 yr) | 45.8% |
| PEG | 0.6 |
Blackrock has beat all 4 of their last earnings calls and boasts a decent dividend of 2.19%, something that has been trending in the right direction for over 22 years now. And although they are exposed to private credit which has come under scrutiny lately, their exposure is limited to roughly 3% of their portfolio so any direct risk is mostly mitigated.
Analysts have rated Blackrock a Strong Buy with a +32% one year forecast on average, and we have it rated a Strong Buy as well but with a lower 1 year forecast of +15%. That would put our price prediction for April 2027 at $1205.68.
Topics: Reddit stock analysis and price prediction, Blackrock stock price prediction
