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DraftKings (DKNG) Gains As Market Dips: What You Should Know

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In the latest trading session, DraftKings (DKNG - Free Report) closed at $62.13, marking a +0.26% move from the previous day. This move outpaced the S&P 500's daily loss of 0.11%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the company had gained 22.83% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.72% and the S&P 500's gain of 2.46% in that time.

Investors will be hoping for strength from DKNG as it approaches its next earnings release, which is expected to be February 26, 2021.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 1.07% lower. DKNG currently has a Zacks Rank of #4 (Sell).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% 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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