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

DUOLINGO (NASDAQ:DUOL) stands out as a high-growth momentum candidate with a solid technical setup, making it an interesting stock for investors seeking both earnings momentum and favorable chart patterns. The company, known for its language-learning platform, has demonstrated strong financial growth while also presenting a technically sound trading opportunity.

Growth Momentum Highlights

• Earnings Growth: DUOL reported a 108% year-over-year EPS growth (TTM), with quarterly EPS growth accelerating in recent periods. The most recent quarter saw a 26% increase compared to the same quarter last year.
• Revenue Expansion: Sales grew nearly 40% over the past year, with consistent quarterly growth above 37%.
• Profit Margins: The company’s profit margin improved significantly, reaching 15.2% in the latest quarter, up from 6.6% in the prior quarter.
• Free Cash Flow: FCF per share surged by 439% over the past year, indicating strong cash generation.
• Analyst Revisions: EPS estimates for the next year have been revised upward by 0.57% over the past three months, reflecting improving sentiment.

Technical Strength & Setup

• Technical Rating (9/10): DUOL is in a long-term uptrend, outperforming 97% of stocks over the past year. The short-term trend is neutral, but the long-term trend remains favorable.
• Setup Quality (7/10): The stock is consolidating within a defined range, offering a potential entry point. Support is found near $474, providing a clear stop-loss level.
• Relative Strength: DUOL ranks in the top 3% of stocks based on relative performance over the past year.

For a deeper look at the technicals, review the full technical report for DUOL.

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Disclaimer

This is not investment advice. The observations are based on data available at the time of writing. Always conduct your own research before making investment decisions.