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

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DraftKings (DKNG - Free Report) closed at $49.79 in the latest trading session, marking a -1.7% move from the prior day. This move lagged the S&P 500's daily gain of 0.42%.

Prior to today's trading, shares of the company had lost 2.91% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 4.21% and lagged the S&P 500's gain of 2.64% in that time.

DKNG will be looking to display strength as it nears its next earnings release, which is expected to be August 6, 2021. In that report, analysts expect DKNG to post earnings of -$0.61 per share. This would mark 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 -$2.85 per share and revenue of $1.13 billion. These totals would mark changes of -3.26% and +83.6%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for DKNG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.21% lower within the past month. DKNG is currently sporting a Zacks Rank of #5 (Strong Sell).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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