In the latest trading session, Duolingo, Inc. (DUOL) closed at $355.86, marking a -3.95% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.14% for the day. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.38%.
Prior to today's trading, shares of the company had lost 21.44% lagged the Business Services sector's gain of 2.04% and the S&P 500's gain of 5.35%.
The investment community will be closely monitoring the performance of Duolingo, Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2025. The company is predicted to post an EPS of $0.55, indicating a 7.84% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $240.53 million, reflecting a 34.88% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.9 per share and a revenue of $995.83 million, representing changes of +54.26% and +33.13%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Duolingo, Inc. These recent revisions tend to reflect the evolving nature of short-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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.25% lower. Duolingo, Inc. is currently a Zacks Rank #4 (Sell).
In the context of valuation, Duolingo, Inc. is at present trading with a Forward P/E ratio of 127.88. This valuation marks a premium compared to its industry average Forward P/E of 20.48.
We can also see that DUOL currently has a PEG ratio of 2.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DUOL's industry had an average PEG ratio of 1.56 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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