In the latest close session, Duolingo, Inc. (DUOL) was down 3.62% at $146.08. This change lagged the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw a downswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.91%.
The company's shares have seen a decrease of 15.88% over the last month, not keeping up with the Business Services sector's loss of 4.89% and the S&P 500's gain of 0.38%.
The upcoming earnings release of Duolingo, Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.79, reflecting a 154.84% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $276.79 million, up 32.09% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $8.38 per share and a revenue of $1.03 billion, demonstrating changes of +345.74% and 0%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Duolingo, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.93% lower. Duolingo, Inc. presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Duolingo, Inc. is currently exchanging hands at a Forward P/E ratio of 37.36. Its industry sports an average Forward P/E of 16.91, so one might conclude that Duolingo, Inc. is trading at a premium comparatively.
We can additionally observe that DUOL currently boasts a PEG ratio of 0.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Technology Services stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DUOL in the coming trading sessions, be sure to utilize Zacks.com.
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
