Duolingo, Inc. (DUOL) closed at $91.46 in the latest trading session, marking a -2.21% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.18%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 1.96%.
The company's stock has dropped by 8.26% in the past month, falling short of the Business Services sector's loss of 0.54% and the S&P 500's gain of 3.93%.
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 4, 2026. The company is forecasted to report an EPS of $0.79, showcasing a 9.72% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $288.6 million, up 25.07% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.08 per share and a revenue of $1.21 billion, representing changes of -64.06% and +16.53%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Duolingo, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Duolingo, Inc. is carrying a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Duolingo, Inc. is currently trading at a Forward P/E ratio of 30.37. This represents a premium compared to its industry average Forward P/E of 15.59.
It's also important to note that DUOL currently trades at a PEG ratio of 0.65. 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. The Technology Services industry currently had an average PEG ratio of 1.42 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Duolingo, Inc. (DUOL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).