Online language learning site Duolingo trades above its 200-day and 21-day moving averages and is quickly closing on its 50-day. Its stock traded at 145 last August and was trading at 332 Wednesday afternoon, a 130% increase.
Reflecting Duolingo's continuing growth, its IBD SmartSelect Composite Rating rose from 94 to a near-best 96 Wednesday. The upwardly revised rating shows that Duolingo is in the top 4% of stocks overall. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better, a good item to have on a stock checklist when looking for the best stocks to buy and watch.
Amazing Profit Growth In 2024 Tapered To Mild This Year
Duolingo over the last four quarters reported EPS growth of more than 1,000%, 538%, 600% and 12% last quarter. That most recent quarter's growth rate is smaller but not bad considering it had a tough comparison vs. the same quarter a year earlier, when earnings surged 174%. Sales have grown at a steady, strong pace during that period, rising 45%, 41%, 40% and 39%.
Other ratings for the Pittsburgh-based company are mixed. It has a strong 93 Relative Strength Rating, putting it in the top 7% of stocks for price performance this past year. Additionally, its A SMR Rating (sales + profit margin + return on equity) is tops on an A-to-E scale.
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However it has a middling 65 EPS Rating as its earnings growth rate has slowed, and also a middling C- Accumulation/Distribution Rating. The C- rating shows that funds are buying about as many Duolingo shares as they are selling. More funds are buying DUOL stock though, a bullish sign. The number of funds holding the stock rose from 662 in June to 687 in September and 751 in December.
Duolingo stock went public at the end of July 2021. It rose to an all-time high 441.77 on Feb. 18 this year. Then it retreated amid the market correction.
DUOL Drifted Down, On The Rise Again
Duolingo stock rose above a stage two consolidation pattern buy point of 378.48 on Feb. 4 but its stock drifted downward during the recent market correction, dipping to a 263.68 low on March 10. It turned up from there and has closed higher for the last five trading sessions. Wednesday afternoon Duolingo traded at 325.57, down for the day.
Duolingo earns the No. 2 rank among its peers in the 20-stock Computer Software-Education industry group. Spotify Technology is the No. 1-ranked stock in the group. The group itself ranks a lofty No. 15 among the 197 industry groups IBD tracks.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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