Duolingo, Inc. (DUOL) closed at $337.19 in the latest trading session, marking a -2.9% move from the prior day. This change lagged the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.08%.
Shares of the company have appreciated by 21.46% over the course of the past month, outperforming the Business Services sector's loss of 0.31%, and the S&P 500's gain of 4.03%.
The investment community will be paying close attention to the earnings performance of Duolingo, Inc. in its upcoming release. The company is slated to reveal its earnings on November 5, 2025. It is anticipated that the company will report an EPS of $0.72, marking a 46.94% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $260.63 million, up 35.33% from the prior-year quarter.
DUOL's full-year Zacks Consensus Estimates are calling for earnings of $3.12 per share and revenue of $1.02 billion. These results would represent year-over-year changes of +65.96% and +36.18%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Duolingo, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Duolingo, Inc. presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Duolingo, Inc. is currently being traded at a Forward P/E ratio of 111.26. This represents a premium compared to its industry average Forward P/E of 22.4.
We can additionally observe that DUOL currently boasts a PEG ratio of 2.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.84.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
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.
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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