Duolingo, Inc. (DUOL) closed at $128.35 in the latest trading session, marking a -3.01% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.38%. Elsewhere, the Dow saw an upswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.9%.
Shares of the company have appreciated by 4.16% over the course of the past month, outperforming the Business Services sector's gain of 3.64%, and the S&P 500's gain of 1.27%.
The upcoming earnings release of Duolingo, Inc. will be of great interest to investors. The company's earnings report is expected on August 5, 2026. It is anticipated that the company will report an EPS of $0.58, marking a 36.26% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $296.19 million, up 17.42% from the prior-year quarter.
DUOL's full-year Zacks Consensus Estimates are calling for earnings of $2.76 per share and revenue of $1.21 billion. These results would represent year-over-year changes of -67.79% and +16.36%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Duolingo, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Duolingo, Inc. boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Duolingo, Inc. is presently being traded at a Forward P/E ratio of 47.92. For comparison, its industry has an average Forward P/E of 16.85, which means Duolingo, Inc. is trading at a premium to the group.
One should further note that DUOL currently holds a PEG ratio of 1.03. 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 of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.51.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 43% 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.
To follow DUOL in the coming trading sessions, be sure to utilize Zacks.com.
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Duolingo, Inc. (DUOL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).