10 Best Education Stocks to Buy Right Now

Page 9 of 9

1. Duolingo, Inc. (NASDAQ:DUOL)

Number of Hedge Fund Holdings: 55

Vikram Kesavabhotla, an analyst at Baird, has initiated coverage on Duolingo, Inc. (NASDAQ:DUOL) with a ‘Neutral’ rating and a price target of $280, implying a surge of about 3.3% from the current level.

While the analyst affirmed the company’s effective product development and positioning in the language learning market, Duolingo, Inc. (NASDAQ:DUOL) still has some competitive risks that make the investors considerably cautious. Additionally, the firm highlighted the company’s dedication to innovation and fulfilling customer needs.

If we consider the one- and three-year returns, Duolingo, Inc. (NASDAQ:DUOL) has outperformed the market by 11.20% and 126.93%, respectively. Much of this outperformance is attributed to AI, which has not only delivered real operating leverage but also enabled rapid course expansion and declining costs. All in all, one thing the company certainly has is growth potential that can make it the next exceptional consumer platform.

Duolingo, Inc. (NASDAQ:DUOL) is a Pennsylvania-based mobile learning platform operating in the United States, the United Kingdom, and internationally. Incorporated in 2011, the company offers courses in 40 different languages.

While we acknowledge the potential of DUOL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DUOL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.

Page 9 of 9