NASDAQ:DUOL—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if DUOLINGO (NASDAQ:DUOL) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted DUOLINGO showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Analyzing Growth Metrics

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 777.78% over the past year.
• DUOL shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.48%.
• DUOL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.65% yearly.
• Based on estimates for the next years, DUOL will show a very strong growth in Earnings Per Share. The EPS will grow by 135.04% on average per year.
• Based on estimates for the next years, DUOL will show a very strong growth in Revenue. The Revenue will grow by 26.78% on average per year.

Health Assessment of NASDAQ:DUOL

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:DUOL was assigned a score of 8 for health:

• An Altman-Z score of 23.58 indicates that DUOL is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 23.58, DUOL belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
• 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.
• A Current Ratio of 3.09 indicates that DUOL has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 3.09, DUOL belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
• 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.
• DUOL's Quick ratio of 3.09 is amongst the best of the industry. DUOL outperforms 82.81% of its industry peers.

Profitability Analysis for NASDAQ:DUOL

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:DUOL scores a 5 out of 10:

• With an excellent Return On Assets value of 7.12%, DUOL belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
• The Return On Equity of DUOL (10.55%) is better than 68.75% of its industry peers.
• DUOL's Return On Invested Capital of 5.59% is fine compared to the rest of the industry. DUOL outperforms 67.19% of its industry peers.
• DUOL has a better Profit Margin (12.59%) than 85.94% of its industry peers.
• The Gross Margin of DUOL (73.13%) is better than 85.94% of its industry peers.

Why is NASDAQ:DUOL a setup?

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 and the volatility has been reduced. There is very little resistance above the current price. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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

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

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

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.