Duolingo, Inc. (DUOL) closed the most recent trading day at $120.70, moving +1.51% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.33%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Shares of the company witnessed a loss of 26.48% over the previous month, trailing the performance of the Business Services sector with its loss of 7.51%, and the S&P 500's loss of 0%.
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 February 26, 2026. The company's upcoming EPS is projected at $0.79, signifying a 154.84% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $276.79 million, reflecting a 32.09% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.38 per share and revenue of $1.03 billion, which would represent changes of +345.74% and +37.9%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Duolingo, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 1.55% lower. Duolingo, Inc. is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Duolingo, Inc. is holding a Forward P/E ratio of 29.65. This indicates a premium in contrast to its industry's Forward P/E of 16.38.
It is also worth noting that DUOL currently has a PEG ratio of 0.64. 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. The average PEG ratio for the Technology Services industry stood at 1.59 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 157, placing it within the bottom 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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