Why NASDAQ:DUOL Is a Standout High-Growth Stock in a Consolidation Phase.

Last update: Sep 6, 2024

In this article, we'll take a closer look at DUOLINGO (NASDAQ:DUOL) as a potential candidate for growth investing. While it's important for investors to conduct their own research, DUOLINGO has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Evaluating Growth: NASDAQ:DUOL

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:DUOL, the assigned 8 reflects its growth potential:

The Earnings Per Share has grown by an impressive 277.22% over the past year.
Looking at the last year, DUOL shows a very strong growth in Revenue. The Revenue has grown by 43.41%.
Measured over the past years, DUOL shows a very strong growth in Revenue. The Revenue has been growing by 48.65% on average per year.
The Earnings Per Share is expected to grow by 129.76% on average over the next years. This is a very strong growth
Based on estimates for the next years, DUOL will show a very strong growth in Revenue. The Revenue will grow by 30.23% on average per year.

Understanding NASDAQ:DUOL's Health Score

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:DUOL has earned a 8 out of 10:

An Altman-Z score of 15.83 indicates that DUOL is not in any danger for bankruptcy at the moment.
DUOL has a Altman-Z score of 15.83. This is amongst the best in the industry. DUOL outperforms 95.31% of its industry peers.
DUOL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
DUOL has a Current Ratio of 3.28. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.28, DUOL belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
A Quick Ratio of 3.28 indicates that DUOL has no problem at all paying its short term obligations.
DUOL's Quick ratio of 3.28 is amongst the best of the industry. DUOL outperforms 82.81% of its industry peers.

Understanding NASDAQ:DUOL's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:DUOL, the assigned 5 is a significant indicator of profitability:

DUOL's Return On Assets of 5.81% is amongst the best of the industry. DUOL outperforms 81.25% of its industry peers.
The Return On Equity of DUOL (8.63%) is better than 65.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.92%, DUOL is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
The Profit Margin of DUOL (10.44%) is better than 81.25% of its industry peers.
The Gross Margin of DUOL (73.31%) is better than 82.81% of its industry peers.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:DUOL scores a 8 out of 10:

Besides having an excellent technical rating, DUOL also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 211.42. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 202.81, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of DUOL contains the most current fundamental analsysis.

Our latest full technical report of DUOL contains the most current technical analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.