Why the high growth investor may take a look at DUOLINGO (NASDAQ:DUOL).

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.

In-Depth Technical Analysis of NASDAQ:DUOL

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, DUOL scores 10 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!
• When comparing the yearly performance of all stocks, we notice that DUOL is one of the better performing stocks in the market, outperforming 90% of all stocks. On top of that, DUOL also shows a nice and consistent pattern of rising prices.
• DUOL is part of the Diversified Consumer Services industry. There are 67 other stocks in this industry. DUOL outperforms 81% 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.
• In the last month DUOL has a been trading in the 301.11 - 378.48 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:DUOL currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, DUOL also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 341.62, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for DUOL in the last couple of days, which is a good sign.

Why NASDAQ:DUOL may be interesting for high growth investors.

• 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
• With consistent quarter-to-quarter (Q2Q) revenue growth of 39.94%, DUOLINGO exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• DUOLINGO has achieved significant 1-year revenue growth of 42.48%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• The recent financial report of DUOLINGO demonstrates a 717.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• accelerating EPS growth for DUOLINGO: the current Q2Q growth of 717.0% exceeds the previous year Q2Q growth of 113.0%.
• 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.
• With a solid Return on Equity (ROE) of 10.55%, DUOLINGO exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• DUOLINGO maintains a healthy Debt-to-Equity ratio of 0.0. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• DUOLINGO exhibits a favorable ownership structure, with an institutional shareholder ownership of 82.92%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• DUOLINGO has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• DUOLINGO has achieved an impressive Relative Strength (RS) rating of 90.49, showcasing its ability to outperform the broader market. This strong performance positions DUOLINGO as an attractive stock for potential price appreciation.

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

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.