Reddit saw an improvement in its IBD SmartSelect Composite Rating Thursday, from 89 to 98.
The upgrade means the stock currently tops 98% of all other stocks in terms of key performance metrics and technical strength. The top-performing stocks tend to have a 95 or better grade as they kick off a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
Reddit is now out of buy range after breaking out from a 78.08 buy point in a cup without handle.
Looking For Winning Stocks? How To Invest In Both Bull And Bear Markets
One weak spot is the company's 73 EPS Rating, which tracks quarterly and annual earnings-per-share growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of A shows heavy buying by institutional investors over the last 13 weeks.
In Q3, the company posted 0% EPS growth. Revenue growth increased 68%, up from 54% in the prior report. The company has now posted accelerating growth in each of the last four reports.
Reddit holds the No. 3 rank among its peers in the Internet-Content industry group. Meta Platforms is the top-ranked stock within the group.
