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Duolingo, Inc. (DUOL) Stock Dips While Market Gains: Key Facts

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In the latest close session, Duolingo, Inc. (DUOL - Free Report) was down 3.29% at $138.34. This change lagged the S&P 500's 0.7% gain on the day. Meanwhile, the Dow experienced a rise of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.83%.

The company's shares have seen a decrease of 0.33% over the last month, not keeping up with the Business Services sector's gain of 3.51% and outstripping the S&P 500's loss of 1.21%.

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 November 3, 2026. It is anticipated that the company will report an EPS of $0.55, marking a 42.11% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $304.66 million, up 12.13% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.62 per share and revenue of $1.21 billion. These totals would mark changes of -69.43% and +16.53%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Duolingo, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. As of now, Duolingo, Inc. holds a Zacks Rank of #3 (Hold).

Investors should also note Duolingo, Inc.'s current valuation metrics, including its Forward P/E ratio of 54.53. For comparison, its industry has an average Forward P/E of 15.6, which means Duolingo, Inc. is trading at a premium to the group.

We can also see that DUOL currently has a PEG ratio of 1.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.18.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 98, this industry ranks in the top 40% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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