Duolingo, Inc. (DUOL) closed at $299.50 in the latest trading session, marking a -3.18% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.55%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.95%.
Prior to today's trading, shares of the company had lost 3.76% lagged the Business Services sector's gain of 0.72% and the S&P 500's gain of 3.64%.
The investment community will be paying close attention to the earnings performance of Duolingo, Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.72, reflecting a 46.94% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $260.63 million, indicating a 35.33% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.12 per share and a revenue of $1.02 billion, signifying shifts of +65.96% and +36.18%, respectively, from the last year.
Any recent changes to analyst estimates for Duolingo, Inc. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Duolingo, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Duolingo, Inc. is presently being traded at a Forward P/E ratio of 99.11. This represents a premium compared to its industry average Forward P/E of 22.22.
It's also important to note that DUOL currently trades at a PEG ratio of 2.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services industry had an average PEG ratio of 1.88 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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