Wednesday's IBD 50 Stocks To Watch pick, language software leader Duolingo, is rapidly approaching a new buy point in the stock market today. That makes Duolingo stock one of the best stocks to watch right now. Shares lost more than 2% Wednesday midday, about 5% away from their entry.
Duolingo offers a mobile platform for language learning. The app offers 40 languages, including Spanish, English, French, German, Italian, Portuguese, Japanese and Chinese. The company sees growth drivers in an addressable market of 2 billion online language learners.
On Feb. 28 the company said quarterly earnings were 26 cents per share, up from a 35-cent loss a year ago. Revenue grew 45% to $151 million. Duolingo stock analysts has expected earnings of 4 cents a share on $148.3 million in sales. The company had previously forecast sales of $145 million to $148 million.
Chief Executive Luis von Ahn said in the earnings release that "2023 was an exceptional year that exceeded our own high expectations."
"It was capped off with a very strong Q4 that saw us achieve record bookings, revenue and profitability," he said. The next day, shares rallied in response to the report.
Duolingo Stock Nears Buy Trigger
Following a successful test of the 50-day moving average on March 5, Duolingo stock is approaching a 241.86 buy point in a cup with handle, according to IBD MarketSurge chart analysis. A strong move above that level would place Duolingo stock in a new buy area, offering investors a chance to pick up shares. The handle, however, is deeper than normal, with a decline of 18%.
Following big price gains since late 2022, Duolingo stock boasts a strong 96 out of 99 IBD Composite Rating, according to IBD Stock Checkup. That makes Duolingo one of the best stocks to watch in the ongoing stock market uptrend.
Keep an eye on the stock's relative strength line. Currently, it is lagging behind its old highs. Ideally, the RS line should hit a new high on the breakout day or shortly thereafter. The RS line measures a stock's price performance vs. the S&P 500 and is the blue line plotted on IBD Charts.
Best Stocks To Buy And Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Celsius | 68.95 | Consolidation | |
| Netflix | 579.64 | Tight area | |
| Cloudflare | 102.30 | Tight area |
Source: IBD Data As Of March 12, 2024
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
