Is DraftKings (DKNG) Outperforming Other Consumer Discretionary Stocks This Year?
Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. DraftKings (DKNG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.
DraftKings is a member of our Consumer Discretionary group, which includes 276 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. DraftKings is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DKNG's full-year earnings has moved 9.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, DKNG has gained about 117.4% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of 10% on a year-to-date basis. This shows that DraftKings is outperforming its peers so far this year.
Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Playa Hotels & Resorts (PLYA). The stock has returned 37.4% year-to-date.
In Playa Hotels & Resorts' case, the consensus EPS estimate for the current year increased 5.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, DraftKings belongs to the Gaming industry, which includes 39 individual stocks and currently sits at #72 in the Zacks Industry Rank. On average, this group has gained an average of 29.6% so far this year, meaning that DKNG is performing better in terms of year-to-date returns.
On the other hand, Playa Hotels & Resorts belongs to the Hotels and Motels industry. This 15-stock industry is currently ranked #84. The industry has moved +10.9% year to date.
DraftKings and Playa Hotels & Resorts could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.
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DraftKings Inc. (DKNG) : Free Stock Analysis Report
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