Duolingo Inc (NASDAQ:DUOL) – A High-Growth Momentum Stock with Strong Technical Setup

Duolingo Inc (NASDAQ:DUOL) stands out as a high-growth momentum candidate with a favorable technical setup, making it an interesting prospect for investors seeking both fundamental strength and chart momentum. The company’s recent financial performance and technical indicators suggest potential for continued upside.

Fundamental Growth Momentum

Duolingo’s financials reflect strong growth trends:

• Revenue Growth (TTM): +40.8%
• EPS Growth (TTM): +108.2%
• Free Cash Flow Growth (1Y): +88.9%
• Recent Quarterly EPS Growth: +26.3% (Q2Q), with prior quarters showing even stronger expansion (+716.7%, +537.5%)
• Profit Margins: Improving, with the last full year at 11.8%, up from 3.0% the prior year
• Analyst Revisions: Positive, with next-year EPS estimates revised upward by 0.57% over the past three months

The company has also exceeded earnings expectations in three of the last four quarters, with an average EPS beat of 39.5%.

Technical Strength & Setup Quality

Duolingo’s technical profile is equally compelling:

• Technical Rating: 10/10 – reflecting strong upward trends in both short and long-term timeframes
• Relative Strength: Outperforming 98% of all stocks in the market
• Setup Rating: 8/10 – indicating a consolidation phase with reduced volatility, suggesting a potential breakout opportunity
• Support Levels: Multiple support zones, including a key area between $520.22 and $525.72
• Recent Pattern: Bull flag formation, often a continuation signal after a strong upward move

The stock is trading near its 52-week high, demonstrating leadership within its sector (Diversified Consumer Services), where it outperforms 94% of peers.

For a deeper technical breakdown, review the full technical analysis report for DUOL.

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Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.