Why NASDAQ:DUOL qualifies as a high growth stock.

Our stockscreener has identified a possible breakout setup on DUOLINGO (NASDAQ:DUOL). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:DUOL for potential opportunities.

Insights from Technical Analysis

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Taking everything into account, DUOL scores 9 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, DUOL is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• DUOL is part of the Diversified Consumer Services industry. There are 66 other stocks in this industry. DUOL outperforms 87% of them.
• DUOL is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so DUOL is lagging the market slightly.
• When comparing the yearly performance of all stocks, we notice that DUOL is one of the better performing stocks in the market, outperforming 91% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• In the last month DUOL has a been trading in the 273.06 - 330.61 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

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. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 283.47, a Stop Loss order could be placed below this zone.

Looking into the high growth metrics of DUOLINGO

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), DUOLINGO highlights its ability to generate increasing profitability, showcasing a 717.0% growth.
• The quarter-to-quarter (Q2Q) revenue growth of 39.94% of DUOLINGO has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue growth.
• With notable 1-year revenue growth of 42.48%, 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 quarterly earnings of DUOLINGO have shown a 717.0% 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
• The earnings per share (EPS) growth of DUOLINGO are accelerating: the current Q2Q growth of 717.0% is above the previous year Q2Q growth of 113.0%. Earnings momentum and acceleration are key for high growth systems.
• With a favorable trend in its operating margin over the past year, DUOLINGO demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• DUOLINGO has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• DUOLINGO showcases a robust Return on Equity (ROE) of 10.55%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• Maintaining a Debt-to-Equity ratio of 0.0, DUOLINGO demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• DUOLINGO has consistently surpassed EPS estimates in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.
• DUOLINGO has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 91.02 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. DUOLINGO is well-positioned for potential price growth opportunities.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.