Duolingo, Inc. (DUOL) Hits Fresh High: Is There Still Room to Run?

Company Performance - Duolingo, Inc. shares have increased by 8.8% over the past month and reached a new 52-week high of $324 [1] - The stock has gained 39.2% since the beginning of the year, outperforming the Zacks Business Services sector's 26% and the Zacks Technology Services industry's 50.5% [1] Earnings and Revenue - Duolingo has consistently exceeded earnings expectations, reporting EPS of $0.49 against a consensus estimate of $0.36 in its last earnings report on November 6, 2024 [2] - For the current fiscal year, Duolingo is projected to achieve earnings of $2 per share on revenues of $736.1 million, reflecting a 471.43% increase in EPS and a 38.6% increase in revenues [3] - The next fiscal year forecasts earnings of $2.91 per share on revenues of $945.59 million, indicating year-over-year changes of 45.34% and 28.46%, respectively [3] Valuation Metrics - Duolingo has a Value Score of F, while its Growth and Momentum Scores are A and B, respectively, resulting in a VGM Score of B [6] - The stock trades at 157.7X current fiscal year EPS estimates, significantly higher than the peer industry average of 26.8X, and at 579.9X on a trailing cash flow basis compared to the peer group's average of 12.5X [6] Zacks Rank - Duolingo holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, meeting the criteria for potential investment [7] Industry Comparison - The Technology Services industry is positioned in the top 29% of all industries, providing favorable conditions for Duolingo and its peers [10]