Why DUOLINGO (NASDAQ:DUOL) qualifies as a high growth stock.

Our stock screener has identified DUOLINGO (NASDAQ:DUOL) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NASDAQ:DUOL.

Insights from Technical Analysis

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall DUOL gets a technical rating of 10 out of 10. Both in the recent history as in the last year, DUOL has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, DUOL did better than 96% of all other stocks.
• DUOL is one of the better performing stocks in the Diversified Consumer Services industry, it outperforms 96% of 66 stocks in the same industry.
• DUOL is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• DUOL is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

For an up to date full technical analysis you can check the technical report of DUOL

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:DUOL is 8:

DUOL has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 290.60. Right above this resistance zone may be a good entry point. Another positive sign is the recent Pocket Pivot signal.

What matters for high growth investors.

• The quarterly earnings of DUOLINGO have shown a 538.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• DUOLINGO has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 40.59%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• With notable 1-year revenue growth of 43.41%, DUOLINGO exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• The average next Quarter EPS Estimate for DUOLINGO has experienced a 18.11% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• The quarterly earnings of DUOLINGO have shown a 538.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• DUOLINGO shows accelerating EPS growth: when comparing the current Q2Q growth of 538.0% to the previous year Q2Q growth of 121.0%, we see the growth rate improving.
• DUOLINGO has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• DUOLINGO has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• DUOLINGO exhibits a favorable Debt-to-Equity ratio at 0.0. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• With 81.55% of the total shares held by institutional investors, DUOLINGO showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• With a track record of beating EPS estimates in the last 4 quarters, DUOLINGO showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.
• The Relative Strength (RS) of DUOLINGO has been consistently solid, with a current 96.41 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage. DUOLINGO exhibits strong prospects for further price appreciation.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Disclaimer

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.