DAO Stock Analysis: Buy, Sell, or Hold?
DAO - Youdao, Inc. American Depositary Shares, each representing one Class A Ordinary Share
$11.78
0.67 (6.03%)
▲
5d:
-0.42%
30d:
+2.08%
90d:
+16.06%
BUY
HIGH Confidence
Analysis Updated: Jun 23, 2026 12:00 AM ET
Earnings: Aug 13, 2026
Get Alerted When DAO Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
✅ BUY SIGNAL: DAO shows strong fundamentals and good volume confirmation. Solid entry point despite fair pricing.
✅ BUY SIGNAL: DAO shows strong fundamentals and good volume confirmation. Solid entry point despite fair pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$22.17
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$13.77
14.4% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 4.2x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DAO is currently trading at $11.78, which is considered fair relative to its 30-day fair value range of $11.40 to $12.15. The stock's valuation (Forward PE: 4.3) is in line with its historical norms (4.2). At these levels, the market is pricing in 1.3% annual earnings growth.
Technical Outlook: Technically, DAO is in a uptrend. Immediate support is located at $10.60, while resistance sits at $12.58. The stock is showing strong short-term momentum, up 6.0% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DAO is in a uptrend. Immediate support is located at $10.60, while resistance sits at $12.58. The stock is showing strong short-term momentum, up 6.0% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$11.40 -
$12.15
Company Quality Score
55/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
75.7%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+6.0%)
- NEUTRAL: Near Wall St target ($12.45)
- BULLISH: Expecting earnings turnaround to 1.3% growth with 3.8% revenue growth
Trading Range Analysis
30-Day Trading Range
$11.40 -
$12.15
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$10.60
Resistance Level
$12.58
Current Trend
Uptrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
4.35
Wall Street Target
$12.45
(+5.7%)
Revenue Growth (YoY)
3.8%
Earnings Growth (YoY)
-50.0%
Profit Margin
1.2%
Valuation Premium vs History
+1.3% premium
PE vs Historical
4.4 vs 4.2
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.3%
(market-implied from PE analysis)
1-Year Target
$11.93
(+1%)
2-Year Target
$12.09
(+3%)
3-Year Target
$12.25
(+4%)
3-Yr Target (if PE normalizes)
(PE: 4→4)
PE COMPRESSION
$11.83
(+1%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 46.8%)
$186.94
(+1487%)
Base:
(SPY PE: 4.3, Growth: 46.8%)
$37.30
(+217%)
Bear:
(PE: 3.7, Growth: 46.8%)
$31.71
(+169%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (123x PE), but valuation improves significantly next year (4x PE) as earnings recover.
Trailing PE: 123.44 | Current EPS (TTM): $0.09
Bull Case
$24.44
(+108%)
Analyst growth 100.0%, PE expands to 135.8
Base Case
$22.22
(+89%)
Market implied 100.0%, PE stable at 123.4
Bear Case
$7.55
(-36%)
Severe decline -20.0%, PE contracts to 104.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 23, 2026 6:05 PM ET
Data refreshes hourly during market hours. Next update: 7:05 PM
Data refreshes hourly during market hours. Next update: 7:05 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is DAO showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
Top Rated Education & Training Services Stocks
Top-rated stocks in Education & Training Services by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
EDU
New Oriental Education &… |
BUY
23 analysts |
$71 | 54 HOLD |
|
TAL
TAL Education Group |
STRONG BUY
19 analysts |
$16 | 47 HOLD |
|
COUR
Coursera Inc |
BUY
15 analysts |
$8 | 59 HOLD |
|
UTI
Universal Technical Inst… |
STRONG BUY
6 analysts |
$43 | 56 HOLD |
|
LINC
Lincoln Educational Serv… |
STRONG BUY
5 analysts |
$57 | 60 BUY |
