Duolingo, Inc. (DUOL) closed at $306.17 in the latest trading session, marking a +1.68% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.33%.

Shares of the company witnessed a loss of 30.38% over the previous month, trailing the performance of the Business Services sector with its loss of 10.46% and the S&P 500's loss of 7.48%.

The upcoming earnings release of Duolingo, Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $0.52, marking an 8.77% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $222.98 million, showing a 33.08% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.64 per share and a revenue of $973.45 million, signifying shifts of +40.43% and +30.14%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Duolingo, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 13.14% lower within the past month. Currently, Duolingo, Inc. is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Duolingo, Inc. is presently trading at a Forward P/E ratio of 114.25. This signifies a premium in comparison to the average Forward P/E of 21.86 for its industry.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 28% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Duolingo, Inc. (DUOL) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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