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

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

In the latest close session, Duolingo, Inc. (DUOL) was down 1.82% at $139.52. This change lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.02%.

Heading into today, shares of the company had lost 4.89% over the past month, lagging the Business Services sector's gain of 0.6% and the S&P 500's gain of 0.67%.

Investors will be eagerly watching for the performance of Duolingo, Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 3, 2026. The company's upcoming EPS is projected at $0.55, signifying a 42.11% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $304.66 million, reflecting a 12.13% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.62 per share and revenue of $1.21 billion, indicating changes of -69.43% and +16.53%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Duolingo, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. Duolingo, Inc. presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Duolingo, Inc. currently has a Forward P/E ratio of 54.17. This expresses a premium compared to the average Forward P/E of 15.76 of its industry.

Also, we should mention that DUOL has a PEG ratio of 1.16. 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. The Technology Services industry currently had an average PEG ratio of 1.16 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 94, putting it in the top 39% 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.

Be sure to follow all of these stock-moving metrics, and many 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).

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