• Duolingo (DUOL) shows strong technical momentum and trading above all their moving averages.
• DUOL has a 100% technical “Buy” signal.
• Shares have gained more than 200% over the past 52 weeks. 

Today’s Featured Stock:

Valued at $24.1 billion Duolingo (DUOL) is a U.S.-based language learning website and mobile app. The company also offers digital language proficiency assessment exams. 

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. DUOL checks those boxes. Since the Trend Seeker signaled a buy on April 24, the stock has gained 41.46%. 

On the chart, you can note that the stock is trading above all of its daily moving averages and has rising prices on steady volume.

DUOL Price vs. Daily Moving Averages:

Barchart Technical Indicators for Duolingo:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all of its daily moving averages and closed within 2.7% of its 52-week high, it won’t take much to hit another new high.

• Duolingo has a 100% technical “Buy” signal.
• The stock closed at $530.35 on May 15, above its 50-day moving average of $360.38.
• DUOL has a Weighted Alpha of +189.49.
• The stock has gained 200% over the past year.
• Trend Seeker “Buy” signal intact.
• DUOL is trading above its 20, 50 and 100-day moving averages.
• The stock has made 16 new highs and is up 61% in the last month.
• The 14-day Relative Strength Index is at 80.50%.
• The technical support level is at $524.53.

Follow the Fundamentals:

• $24.1 billion market cap.
• 266.3x trailing price-earnings ratio.

Analyst and Investor Sentiment on Duolingo:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are moderately bullish on this stock.

• Wall Street analysts tracked by Barchart issued nine “Strong Buy,” one “Moderate Buy,” and eight “Hold” opinions on the stock with a price target near $461.
• Value Line gives the stock its average rating but a price target of only $358.
• CFRA’s MarketScope gives the stock a “Buy.”.
• MorningStar thinks the stock is 9% overvalued.
• Of the 96 individual investors following the stock on Motley Fool, 81 think the stock will beat the market, while 15 think it won’t.
• 10,510 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Duolingo currently has momentum and support by both the market and individual investors, but it faces competition from rivals Babbel and Rosetta Stone.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.