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

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.

How do we evaluate the Growth for NASDAQ:DUOL?

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:DUOL was assigned a score of 8 for growth:

• The Earnings Per Share has grown by an impressive 777.78% over the past year.
• Looking at the last year, DUOL shows a very strong growth in Revenue. The Revenue has grown by 42.48%.
• 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.
• DUOL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 134.58% yearly.
• Based on estimates for the next years, DUOL will show a very strong growth in Revenue. The Revenue will grow by 30.95% on average per year.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:DUOL has earned a 8 out of 10:

• DUOL has an Altman-Z score of 21.65. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
• DUOL has a Altman-Z score of 21.65. This is amongst the best in the industry. DUOL outperforms 96.88% of its industry peers.
• There is no outstanding debt for DUOL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• DUOL has a Current Ratio of 3.09. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
• DUOL has a better Current ratio (3.09) than 81.25% of its industry peers.
• DUOL has a Quick Ratio of 3.09. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of DUOL (3.09) is better than 82.81% of its industry peers.

Understanding NASDAQ:DUOL's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:DUOL has earned a 6 out of 10:

• DUOL's Return On Assets of 7.12% is amongst the best of the industry. DUOL outperforms 84.38% of its industry peers.
• DUOL has a better Return On Equity (10.55%) than 73.44% of its industry peers.
• DUOL's Return On Invested Capital of 5.59% is fine compared to the rest of the industry. DUOL outperforms 70.31% of its industry peers.
• DUOL's Profit Margin of 12.59% is amongst the best of the industry. DUOL outperforms 84.38% of its industry peers.
• DUOL has a better Operating Margin (7.87%) than 62.50% of its industry peers.
• The Gross Margin of DUOL (73.13%) is better than 82.81% of its industry peers.

How do we evaluate the setup for NASDAQ:DUOL?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:DUOL has a 8 as its setup rating, indicating its current consolidation status.

DUOL has an excellent technical rating and 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.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Check the latest full fundamental report of DUOL for a complete fundamental analysis.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.