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

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DraftKings (DKNG - Free Report) closed the most recent trading day at $51.28, moving -1% from the previous trading session. This move lagged the S&P 500's daily gain of 0.75%.

Prior to today's trading, shares of the company had gained 4.2% over the past month. This has lagged the Consumer Discretionary sector's gain of 10.93% and outpaced the S&P 500's gain of 2.91% in that time.

DKNG will be looking to display strength as it nears its next earnings release. On that day, DKNG is projected to report earnings of -$0.61 per share, which would represent a year-over-year decline of 177.27%. Our most recent consensus estimate is calling for quarterly revenue of $240.84 million, up 239.55% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.94 per share and revenue of $1.13 billion. These totals would mark changes of -6.52% and +83.6%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for DKNG. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.83% lower within the past month. 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 106, putting it in the top 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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