DraftKings (DKNG) Suffers a Larger Drop Than the General Market: Key Insights
The latest trading session saw DraftKings (DKNG) ending at $47.20, denoting a -1.56% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, added 0.17%.
The company's shares have seen an increase of 17.41% over the last month, surpassing the Consumer Discretionary sector's gain of 3.33% and the S&P 500's gain of 5.34%.
The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. The company is predicted to post an EPS of -$0.28, indicating a 67.82% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.12 billion, indicating a 45.5% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.24 per share and revenue of $4.82 billion. These totals would mark changes of +86.13% and +31.46%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for DraftKings. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.45% higher. Right now, DraftKings possesses a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 42% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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DraftKings Inc. (DKNG) : Free Stock Analysis Report
