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

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In the latest trading session, Duolingo, Inc. (DUOL - Free Report) closed at $278.03, marking a +0.03% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw an upswing of 0.33%, while the tech-heavy Nasdaq depreciated by 0.39%.

Shares of the company have appreciated by 33.92% over the course of the past month, outperforming the Business Services sector's gain of 4.62% and the S&P 500's gain of 2.43%.

Market participants will be closely following the financial results of Duolingo, Inc. in its upcoming release. The company is forecasted to report an EPS of $0.36, showcasing a 500% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $188.67 million, showing a 37.09% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.87 per share and a revenue of $736.1 million, demonstrating changes of +434.29% and +38.6%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Duolingo, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Duolingo, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note Duolingo, Inc.'s current valuation metrics, including its Forward P/E ratio of 148.77. This denotes a premium relative to the industry's average Forward P/E of 24.55.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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