In the latest close session, Duolingo, Inc. (DUOL) was down 1.69% at $306.73. The stock fell short of the S&P 500, which registered a gain of 1.23% for the day. Meanwhile, the Dow gained 0.72%, and the Nasdaq, a tech-heavy index, added 1.86%.
Prior to today's trading, shares of the company had lost 4.41% was narrower than the Business Services sector's loss of 5.43% and lagged the S&P 500's gain of 2.45%.
Market participants will be closely following the financial results of Duolingo, Inc. in its upcoming release. The company plans to announce its earnings on November 5, 2025. On that day, Duolingo, Inc. is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 46.94%. Simultaneously, our latest consensus estimate expects the revenue to be $260.52 million, showing a 35.27% escalation compared to the year-ago quarter.
DUOL's full-year Zacks Consensus Estimates are calling for earnings of $3.16 per share and revenue of $1.02 billion. These results would represent year-over-year changes of +68.09% and +36.15%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Duolingo, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.24% higher. Duolingo, Inc. presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Duolingo, Inc. currently has a Forward P/E ratio of 98.73. Its industry sports an average Forward P/E of 22.55, so one might conclude that Duolingo, Inc. is trading at a premium comparatively.
Meanwhile, DUOL's PEG ratio is currently 2.05. 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 industry currently had an average PEG ratio of 1.83 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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