Duolingo stock saw its IBD SmartSelect Composite Rating jump to 96 Tuesday, up from 93 the day before. The language software specialist stock sports a 98 Relative Strength Rating.
The new score indicates the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. Winning stocks often have a 95 or higher score in the early stages of a new price run, so that's a good item to have on your checklist when looking for the best stocks to buy and watch.
Duolingo stock broke out earlier, but has fallen back below the prior 162.20 entry from a double bottom. In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to form.
Looking For The Best Stocks To Buy And Watch? Start Here
One weak spot is the company's 74 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of C- shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
Duolingo Earnings
In Q2, the language learning software company reported 0% EPS growth. Top line growth increased 44%, up from 42% in the prior report. That marks one quarter of accelerating revenue gains. The company's next quarterly report is expected on or around Nov. 8.
Duolingo stock earns the No. 3 rank among its peers in the Computer Software-Education industry group. Arco Platform Cl A is the top-ranked stock within the group.
