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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 $48.99, moving -0.61% from the previous trading session. This change lagged the S&P 500's 0.41% gain on the day.

Heading into today, shares of the company had lost 22.48% over the past month, lagging the Consumer Discretionary sector's loss of 4.84% and the S&P 500's loss of 4.08% in that time.

Investors will be hoping for strength from DKNG as it approaches its next earnings release. The company is expected to report EPS of -$1.07, down 9.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $220.18 million, up 65.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.18 per share and revenue of $1.26 billion, which would represent changes of -15.22% and +105.16%, respectively, from the prior year.

Any recent changes to analyst estimates for DKNG should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. DKNG is currently sporting a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow DKNG in the coming trading sessions, be sure to utilize Zacks.com.


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