Company Performance - Duolingo, Inc. (DUOL) closed at $161.74, reflecting an -8.45% change from the previous day's closing price, which is less than the S&P 500's daily gain of 0.16% [1] - Prior to the recent trading session, Duolingo's shares had decreased by 10%, underperforming the Business Services sector's gain of 3.4% and the S&P 500's gain of 1.89% [1] Upcoming Earnings - Analysts expect Duolingo to report earnings of $0.78 per share, indicating a year-over-year growth of 151.61% [2] - The consensus estimate for revenue is $275.88 million, which represents a 31.65% increase from the same quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates project Duolingo's full-year earnings at $8.37 per share and revenue at $1.03 billion, reflecting year-over-year changes of +345.21% for earnings and 0% for revenue [3] - Recent modifications to analyst estimates suggest a positive outlook for the company's near-term business trends [3] Valuation Metrics - Duolingo is currently trading at a Forward P/E ratio of 43.37, significantly higher than the industry average of 17.5, indicating a premium valuation [6] - The company's PEG ratio stands at 0.93, compared to the Technology Services industry's average PEG ratio of 1.44 [7] Industry Context - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 155, placing it within the bottom 37% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]
Duolingo, Inc. (DUOL) Stock Declines While Market Improves: Some Information for Investors