Duolingo, Inc. (DUOL) Laps the Stock Market: Here's Why

Core Insights - Duolingo, Inc. (DUOL) has shown strong stock performance, closing at $341.08 with a 2.55% increase, outperforming the S&P 500's 0.4% gain [1] - The company is expected to report earnings on November 5, 2025, with an anticipated EPS of $0.72, reflecting a 46.94% increase year-over-year, and projected revenue of $260.63 million, a 35.33% rise from the same quarter last year [2] - For the full year, earnings are projected at $3.16 per share and revenue at $1.02 billion, indicating increases of 68.09% and 36.15% respectively from the previous year [3] Earnings Estimates and Analyst Sentiment - Recent analyst revisions indicate positive sentiment towards Duolingo's business performance, with the Zacks Consensus EPS estimate increasing by 1.24% over the last 30 days [5] - The Zacks Rank system currently rates Duolingo as 2 (Buy), suggesting strong potential for stock performance based on estimate changes [5] Valuation Metrics - Duolingo's Forward P/E ratio stands at 105.25, significantly higher than the industry average of 21.76, indicating a premium valuation [6] - The company's PEG ratio is 2.19, compared to the Technology Services industry's average PEG ratio of 1.84, suggesting that Duolingo is priced for higher growth expectations [7] Industry Context - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 56, placing it in the top 23% of over 250 industries, indicating strong overall performance [7][8]