In the latest close session, Duolingo, Inc. (DUOL) was down 5.17% at $140.10. The stock's change was less than the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.15%.
The stock of company has fallen by 2.25% in the past month, lagging the Business Services sector's loss of 1.65% and the S&P 500's gain of 2.05%.
Market participants will be closely following the financial results of Duolingo, Inc. in its upcoming release. The company plans to announce its earnings on November 3, 2026. The company's upcoming EPS is projected at $0.56, signifying a 41.05% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $303.79 million, reflecting a 11.8% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.62 per share and a revenue of $1.21 billion, signifying shifts of -69.43% and +16.46%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Duolingo, Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% higher. Duolingo, Inc. presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Duolingo, Inc. is presently being traded at a Forward P/E ratio of 56.35. This signifies a premium in comparison to the average Forward P/E of 15.64 for its industry.
Meanwhile, DUOL's PEG ratio is currently 1.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.21.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 34% echelons of all 250+ industries.
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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Duolingo, Inc. (DUOL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).