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DraftKings (DKNG) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, DraftKings (DKNG) closed at $47.83, marking a -1.89% move from the previous day. This change lagged the S&P 500's 0.51% loss on the day.

Coming into today, shares of the company had lost 2.36% in the past month. In that same time, the Consumer Discretionary sector lost 0.81%, while the S&P 500 gained 3.08%.

Investors will be hoping for strength from DKNG as it approaches its next earnings release, which is expected to be November 5, 2021. The company is expected to report EPS of -$1.10, down 12.24% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $224.83 million, up 69.25% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.23 per share and revenue of $1.27 billion, which would represent changes of -17.03% and +105.87%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DKNG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% lower. DKNG is holding a Zacks Rank of #3 (Hold) right now.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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