Duolingo (DUOL) and AppLovin (APP) Are Aggressive Growth Stocks

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As the aggressive growth stock strategist at Zacks Investment Research Brian Bolan this week he has two relatively higher priced stocks that have surged of late.

Duolingo DUOL is a Zacks Rank #1 (Strong Buy) and it sports the growth divergence that Brian loves to see with an A for Growth and an F for Value in the Zacks Style Scores. When Brian sees that he knows he is on the right path as growth investors and value investors are looking for different ends of the spectrum.

This company helps people learn another language and we can see from the revenue growth that a lot of people are using it. This year the company is expected to post revenue of $736M and that would be good for 38% topline growth. Next year the company is expecting $945M and that is good for 28% topline growth.

In the video Brian takes a look at the big move in operating margins over the last three quarters. He notes that the forward PE is pretty high, but as sales increase along with margins then the valuation will improve.

Next up is AppLovin APP Which is also a Zacks Rank #1 (Strong Buy) also shows the divergence in growth style scores that DUOL has. AppLovin (APP) has a F for Value and an A for Growth.

This company provides technology platforms that enable developers to market, monetize, analyze and publish their apps. The stock has seen a parabolic move higher of late as have their margins over the last three quarters.

Just as in all of his Aggressive Growth Zacks Rank Buy videos, Brian reviews the earnings history, earnings estimates, growth projections and valuation before taking a look at the chart.

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