DraftKings (DKNG) Outpaces Stock Market Gains: What You Should Know
DraftKings (DKNG) closed the most recent trading day at $62.31, moving +1.96% from the previous trading session. This change outpaced the S&P 500's 0.77% gain on the day.
Coming into today, shares of the company had lost 10.39% in the past month. In that same time, the Consumer Discretionary sector lost 2.43%, while the S&P 500 gained 7.34%.
DKNG will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.50, down 177.78% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $221.65 million, up 150.34% from the year-ago period.
DKNG's full-year Zacks Consensus Estimates are calling for earnings of -$1.84 per share and revenue of $997.31 million. These results would represent year-over-year changes of +33.33% and +62.29%, respectively.
It is also important to note the recent changes to analyst estimates for DKNG. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 3.61% lower. DKNG is currently sporting a Zacks Rank of #4 (Sell).
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DKNG in the coming trading sessions, be sure to utilize Zacks.com.
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