In the latest trading session, Duolingo, Inc. (DUOL) closed at $376.42, marking a +1.51% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.27%.
The company's shares have seen a decrease of 22.5% over the last month, not keeping up with the Business Services sector's loss of 4.21% and the S&P 500's gain of 3.97%.
The upcoming earnings release of Duolingo, Inc. will be of great interest to investors. The company's earnings report is expected on August 6, 2025. The company is forecasted to report an EPS of $0.55, showcasing a 7.84% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $240.53 million, indicating a 34.88% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.9 per share and a revenue of $995.59 million, representing changes of +54.26% and +33.1%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Duolingo, Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.87% downward. Duolingo, Inc. is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Duolingo, Inc. has a Forward P/E ratio of 128 right now. This denotes a premium relative to the industry average Forward P/E of 20.87.
One should further note that DUOL currently holds a PEG ratio of 2.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Technology Services was holding an average PEG ratio of 1.53 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Duolingo, Inc. (DUOL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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