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DraftKings (DKNG) Increases Despite Market Slip: Here's What You Need to Know

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DraftKings (DKNG - Free Report) closed the most recent trading day at $30.25, moving +1.51% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.25%.

Shares of the company witnessed a loss of 4.64% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 4.88% and underperforming the S&P 500's loss of 1.6%.

Market participants will be closely following the financial results of DraftKings in its upcoming release. The company plans to announce its earnings on November 2, 2023. The company is predicted to post an EPS of -$0.69, indicating a 31% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $698.8 million, indicating a 39.22% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of -$1.62 per share and a revenue of $3.54 billion, demonstrating changes of +48.73% and +57.94%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.83% lower. As of now, DraftKings holds a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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