DUOLINGO INC (NASDAQ:DUOL) – A Strong Growth Stock with Technical Breakout Potential

Last update: May 23, 2025

DUOLINGO INC (NASDAQ:DUOL) stands out as a strong growth stock with a promising technical setup, making it an interesting candidate for investors seeking high-growth opportunities. The company, known for its language-learning platform, has demonstrated impressive financial and operational growth while maintaining solid financial health.

Why DUOL Meets Strong Growth Criteria

Revenue & Earnings Growth: DUOL has shown remarkable revenue growth, increasing by 40.84% over the past year. Earnings per share (EPS) surged by 108.25%, reflecting strong operational execution.
Future Growth Prospects: Analysts expect EPS to grow by 52.20% annually, with revenue projected to expand by 21.75% per year.
High Gross Margins: With a gross margin of 72.78%, the company outperforms 89% of its industry peers, indicating efficient cost management.
Strong Financial Health: DUOL scores 8/10 on financial health, with no debt and a robust current ratio of 2.61, ensuring liquidity.

Technical Breakout Potential

Bullish Trend: Both short-term and long-term trends are positive, with the stock trading near its 52-week high.
Bull Flag Pattern: The stock is forming a bull flag, a continuation pattern suggesting further upside after a recent pullback.
Support Levels: Multiple support zones exist between $514.29 and $517.79, providing a potential entry point with limited downside risk.
Relative Strength: DUOL outperforms 98% of all stocks and 94% of its industry peers over the past year.

For a deeper dive into DUOL’s fundamentals, check the full fundamental report. The technical analysis report provides additional insights into the stock’s price action.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.