Investors Learning to Love Duolingo

DUOL offers an international language learning platform, delivering courses in 40 languages, such as Spanish, English, French, German, Italian, Portuguese, Japanese, Chinese, and more. Earlier this year the company announced major upgrades, like video calls. The company is also branching out into music, with recent partnerships offering learners different instrument and song options.

Financially, DUOL’s fiscal third quarter that ended in September showed total revenues rising by 39.9% year-over-year, to $192.6 million. The company’s gross profit grew 38.5% from a year ago, to $140.4 million. Per-share earnings were $0.49, which is up 716.7% from the prior year’s quarter.

It’s no wonder DUOL shares are up 53% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Boosts Duolingo

Institutional volumes reveal plenty. In the last year, DUOL has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in DUOL shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Duolingo.

Duolingo Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DUOL has had strong sales growth:

• 1-year sales growth rate (+43.7%)
• 3-year sales growth rate (+48.7%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +43.3%.

Now it makes sense why the stock has been powering to new heights. DUOL has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Duolingo has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last two years, with more potentially on the horizon. The blue bars below show when DUOL was a top pick…sending shares higher:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Duolingo Price Prediction

The DUOL rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in DUOL at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.