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

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In the latest trading session, DraftKings (DKNG - Free Report) closed at $29.04, marking a -1.36% move from the previous day. This change lagged the S&P 500's 0.01% gain on the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.

Heading into today, shares of the company had lost 0.67% over the past month, outpacing the Consumer Discretionary sector's loss of 5.21% and the S&P 500's loss of 4.45% in that time.

Investors will be hoping for strength from DraftKings as it approaches its next earnings release. On that day, DraftKings is projected to report earnings of -$0.69 per share, which would represent year-over-year growth of 31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $690.22 million, up 37.51% from the year-ago period.

DKNG's full-year Zacks Consensus Estimates are calling for earnings of -$1.62 per share and revenue of $3.53 billion. These results would represent year-over-year changes of +48.73% and +57.49%, respectively.

Any recent changes to analyst estimates for DraftKings should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.11% lower. DraftKings is currently a Zacks Rank #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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