Duolingo, Inc. (DUOL) closed the most recent trading day at $389.45, moving -1.77% from the previous trading session. This change lagged the S&P 500's daily loss of 0.07%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.03%.
Coming into today, shares of the company had lost 20.38% in the past month. In that same time, the Business Services sector lost 2.31%, while the S&P 500 gained 3.94%.
Investors will be eagerly watching for the performance of Duolingo, Inc. in its upcoming earnings disclosure. On that day, Duolingo, Inc. is projected to report earnings of $0.55 per share, which would represent year-over-year growth of 7.84%. Meanwhile, the latest consensus estimate predicts the revenue to be $241.17 million, indicating a 35.24% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.9 per share and a revenue of $998.37 million, signifying shifts of +54.26% and +33.47%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Duolingo, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, 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. Over the past month, there's been a 0.62% fall in the Zacks Consensus EPS estimate. Currently, Duolingo, Inc. is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Duolingo, Inc. is at present trading with a Forward P/E ratio of 136.51. This indicates a premium in contrast to its industry's Forward P/E of 20.66.
We can also see that DUOL currently has a PEG ratio of 3.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.49 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 52, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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