DUOLINGO (NASDAQ:DUOL)—A High-Growth Stock Gearing Up for Its Next Upward Move.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether DUOLINGO (NASDAQ:DUOL) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but DUOLINGO has surfaced on our radar for growth with base formation, warranting further examination.

Unpacking DUOL's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. DUOL has achieved a 8 out of 10:

• DUOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 450.00%, which is quite impressive.
• Looking at the last year, DUOL shows a very strong growth in Revenue. The Revenue has grown by 40.85%.
• The Revenue has been growing by 60.24% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, DUOL will show a very strong growth in Earnings Per Share. The EPS will grow by 50.50% on average per year.
• Based on estimates for the next years, DUOL will show a very strong growth in Revenue. The Revenue will grow by 21.75% on average per year.

How do we evaluate the Health for DUOL?

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. DUOL has earned a 8 out of 10:

• DUOL has an Altman-Z score of 19.26. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
• DUOL's Altman-Z score of 19.26 is amongst the best of the industry. DUOL outperforms 97.18% of its industry peers.
• There is no outstanding debt for DUOL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• DUOL has a Current Ratio of 2.61. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of DUOL (2.61) is better than 83.10% of its industry peers.
• A Quick Ratio of 2.61 indicates that DUOL has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 2.61, DUOL belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, DUOL has achieved a 6:

• DUOL has a better Return On Assets (6.80%) than 80.28% of its industry peers.
• DUOL has a better Return On Equity (10.74%) than 69.01% of its industry peers.
• DUOL has a Return On Invested Capital of 6.42%. This is in the better half of the industry: DUOL outperforms 76.06% of its industry peers.
• Looking at the Profit Margin, with a value of 11.84%, DUOL is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
• DUOL's Operating Margin of 8.53% is fine compared to the rest of the industry. DUOL outperforms 64.79% of its industry peers.
• Looking at the Gross Margin, with a value of 72.78%, DUOL belongs to the top of the industry, outperforming 88.73% of the companies in the same industry.

Why is DUOL a setup?

ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for DUOL is 7:

DUOL has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 298.73, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of DUOL contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of DUOL

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.