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DraftKings (DKNG) Gains But Lags Market: What You Should Know

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In the latest trading session, DraftKings (DKNG - Free Report) closed at $11.77, marking a +0.86% move from the previous day. This move lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.4%.

Prior to today's trading, shares of the company had lost 18.16% over the past month. This has lagged the Consumer Discretionary sector's loss of 11.74% and the S&P 500's loss of 8.3% in that time.

Wall Street will be looking for positivity from DraftKings as it approaches its next earnings report date. The company is expected to report EPS of -$1.22, down 60.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $437.46 million, up 46.99% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.60 per share and revenue of $2.11 billion, which would represent changes of +4.76% and +62.48%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DraftKings. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. DraftKings currently has a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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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