Duolingo, Inc. (DUOL) ended the recent trading session at $131.93, demonstrating a -1.59% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.54%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.56%.
Shares of the company have depreciated by 24.04% over the course of the past month, underperforming the Business Services sector's loss of 6.48%, and the S&P 500's gain of 0.74%.
The investment community will be closely monitoring the performance of Duolingo, Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.79, reflecting a 154.84% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $276.79 million, indicating a 32.09% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.38 per share and revenue of $1.03 billion. These totals would mark changes of +345.74% and 0%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Duolingo, Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.93% lower. Duolingo, Inc. currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Duolingo, Inc. has a Forward P/E ratio of 33.05 right now. This expresses a premium compared to the average Forward P/E of 16.55 of its industry.
One should further note that DUOL currently holds a PEG ratio of 0.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.55.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 38% of all industries, numbering over 250.
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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