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DraftKings (DKNG) Surges 5.2%: Is This an Indication of Further Gains?
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DraftKings (DKNG - Free Report) shares rallied 5.2% in the last trading session to close at $20.33. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 29.3% loss over the past four weeks.
The upswing in DraftKings shares can be attributed to positive report from Morgan Stanley. The research firm expects iGaming and sports betting to be a very large profitable market with only a few market participants. DraftKings is well-positioned to benefit from this prospect.
DraftKings recently announced the launch of its online and mobile sports betting platform in New York. The company is strategically launching the online betting platform in New York ahead of 2022 NFL Playoffs, which marks the busiest season for betting activity in the year.
This company is expected to post quarterly loss of $0.82 per share in its upcoming report, which represents a year-over-year change of -18.8%. Revenues are expected to be $439.51 million, up 36.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For DraftKings, the consensus EPS estimate for the quarter has been revised 4.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DKNG going forward to see if this recent jump can turn into more strength down the road.
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DraftKings (DKNG) Surges 5.2%: Is This an Indication of Further Gains?
DraftKings (DKNG - Free Report) shares rallied 5.2% in the last trading session to close at $20.33. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 29.3% loss over the past four weeks.
The upswing in DraftKings shares can be attributed to positive report from Morgan Stanley. The research firm expects iGaming and sports betting to be a very large profitable market with only a few market participants. DraftKings is well-positioned to benefit from this prospect.
DraftKings recently announced the launch of its online and mobile sports betting platform in New York. The company is strategically launching the online betting platform in New York ahead of 2022 NFL Playoffs, which marks the busiest season for betting activity in the year.
This company is expected to post quarterly loss of $0.82 per share in its upcoming report, which represents a year-over-year change of -18.8%. Revenues are expected to be $439.51 million, up 36.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For DraftKings, the consensus EPS estimate for the quarter has been revised 4.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DKNG going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>