Duolingo, Inc. (DUOL) closed the most recent trading day at $375.02, moving +1.36% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.03%. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 2.74%.
The company's stock has climbed by 11.71% in the past month, exceeding the Business Services sector's loss of 3.26% and the S&P 500's loss of 5.07%.
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 report is set to go public on May 1, 2025. In that report, analysts expect Duolingo, Inc. to post earnings of $0.52 per share. This would mark a year-over-year decline of 8.77%. Meanwhile, our latest consensus estimate is calling for revenue of $222.68 million, up 32.9% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $976.55 million, which would represent changes of +40.96% and +30.55%, respectively, from the prior year.
Investors should also note any recent changes to 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 company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 past month, the Zacks Consensus EPS estimate has shifted 1.42% upward. At present, Duolingo, Inc. boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Duolingo, Inc. is currently being traded at a Forward P/E ratio of 139.62. This expresses a premium compared to the average Forward P/E of 16.19 of its industry.
We can also see that DUOL currently has a PEG ratio of 3.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DUOL's industry had an average PEG ratio of 1.41 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 61, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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