Earnings Estimates Rising for Duolingo (DUOL): Will It Gain?

Core Viewpoint - Duolingo, Inc. (DUOL) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding Duolingo's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and stock price movements, with Zacks 1 Ranked stocks averaging a +25% annual return since 2008 [3]. - For the current quarter, Duolingo is expected to earn $0.52 per share, reflecting a +1.96% change from the previous year, with a 21.13% increase in consensus estimates over the last 30 days [5]. - For the full year, the expected earnings per share is $2.84, representing a +51.06% change from the prior year, with an 8.84% increase in consensus estimates due to five upward revisions against one negative revision [6][7]. Zacks Rank and Performance - Duolingo has achieved a Zacks Rank 2 (Buy) due to favorable estimate revisions, indicating strong potential for outperformance compared to the S&P 500 [8]. - The stock has increased by 66.7% over the past four weeks, suggesting investor confidence in its earnings growth prospects [9].