Duolingo, Inc. (DUOL) closed the most recent trading day at $341.08, moving +2.55% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.4% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.66%.
Shares of the company witnessed a gain of 18.47% over the previous month, beating the performance of the Business Services sector with its loss of 2.72%, and the S&P 500's gain of 1.02%.
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. At the same time, our most recent consensus estimate is projecting a revenue of $260.63 million, reflecting a 35.33% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.16 per share and a revenue of $1.02 billion, demonstrating changes of +68.09% and +36.15%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Duolingo, Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 1.24% higher. Duolingo, Inc. is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Duolingo, Inc. has a Forward P/E ratio of 105.25 right now. For comparison, its industry has an average Forward P/E of 21.76, which means Duolingo, Inc. is trading at a premium to the group.
Meanwhile, DUOL's PEG ratio is currently 2.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.84.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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