Duolingo, Inc. (DUOL) closed at $111.01 in the latest trading session, marking a -1.29% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 0.31%.
The stock of company has fallen by 23.4% in the past month, lagging the Business Services sector's loss of 6.39% and the S&P 500's loss of 0.76%.
The upcoming earnings release of Duolingo, Inc. will be of great interest to investors. The company's earnings report is expected on February 26, 2026. It is anticipated that the company will report an EPS of $0.79, marking a 154.84% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $276.79 million, showing a 32.09% escalation compared to the year-ago quarter.
DUOL's full-year Zacks Consensus Estimates are calling for earnings of $8.38 per share and revenue of $1.03 billion. These results would represent year-over-year changes of +345.74% and +37.9%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Duolingo, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 1.55% fall in the Zacks Consensus EPS estimate. Duolingo, Inc. is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Duolingo, Inc. has a Forward P/E ratio of 28.05 right now. This signifies a premium in comparison to the average Forward P/E of 15.52 for its industry.
We can also see that DUOL currently has a PEG ratio of 0.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DUOL's industry had an average PEG ratio of 1.57 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 151, finds itself in the bottom 39% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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