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Duolingo, Inc. (DUOL) Gains As Market Dips: What You Should Know

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Duolingo, Inc. (DUOL - Free Report) closed at $106.24 in the latest trading session, marking a +2.85% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.49%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 0.9%.

Coming into today, shares of the company had gained 9.75% in the past month. In that same time, the Business Services sector gained 5.05%, while the S&P 500 gained 12.8%.

The investment community will be closely monitoring the performance of Duolingo, Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on May 4, 2026. The company is predicted to post an EPS of $0.79, indicating a 9.72% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $288.54 million, indicating a 25.05% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.08 per share and a revenue of $1.21 billion, signifying shifts of -64.06% and +16.48%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Duolingo, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Duolingo, Inc. is carrying a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Duolingo, Inc. has a Forward P/E ratio of 33.54 right now. This signifies a premium in comparison to the average Forward P/E of 16.11 for its industry.

One should further note that DUOL currently holds a PEG ratio of 0.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services was holding an average PEG ratio of 1.36 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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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