Duolingo, Inc. (DUOL) closed the most recent trading day at $146.81, moving -1.19% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.18%.
The company's shares have seen a decrease of 17.12% over the last month, not keeping up with the Business Services sector's loss of 3.02% and the S&P 500's loss of 0.42%.
Analysts and investors alike will be keeping a close eye on the performance of Duolingo, Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.78, reflecting a 151.61% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $276.29 million, up 31.85% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.37 per share and a revenue of $1.03 billion, indicating changes of +345.21% and 0%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Duolingo, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.53% downward. As of now, Duolingo, Inc. holds a Zacks Rank of #4 (Sell).
Investors should also note Duolingo, Inc.'s current valuation metrics, including its Forward P/E ratio of 36.48. This expresses a premium compared to the average Forward P/E of 16.25 of its industry.
We can additionally observe that DUOL currently boasts a PEG ratio of 0.78. 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. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.5.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 31% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Duolingo, Inc. (DUOL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
