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Duolingo, Inc. (DUOL) Suffers a Larger Drop Than the General Market: Key Insights

The latest trading session saw Duolingo, Inc. (DUOL) ending at $205.29, denoting a -0.6% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.31%. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq depreciated by 1.09%.

Coming into today, shares of the company had gained 15.76% in the past month. In that same time, the Business Services sector gained 0.6%, while the S&P 500 gained 2.73%.

The upcoming earnings release of Duolingo, Inc. will be of great interest to investors. In that report, analysts expect Duolingo, Inc. to post earnings of $0.33 per share. This would mark year-over-year growth of 312.5%. Our most recent consensus estimate is calling for quarterly revenue of $176.81 million, up 39.39% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.74 per share and a revenue of $731.79 million, representing changes of +397.14% and +37.78%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for Duolingo, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Duolingo, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Duolingo, Inc. has a Forward P/E ratio of 118.92 right now. This denotes a premium relative to the industry's average Forward P/E of 22.04.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 55, positioning it in the top 22% of all 250+ industries.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Duolingo, Inc. (DUOL) : Free Stock Analysis Report

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