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DraftKings (DKNG) Rises Higher Than Market: Key Facts

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In the latest market close, DraftKings (DKNG - Free Report) reached $35.72, with a +1.74% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.17%. Elsewhere, the Dow saw a downswing of 0.05%, while the tech-heavy Nasdaq appreciated by 0.2%.

Prior to today's trading, shares of the company had lost 9.23% over the past month. This has lagged the Consumer Discretionary sector's gain of 6.87% and the S&P 500's gain of 4.71% in that time.

The upcoming earnings release of DraftKings will be of great interest to investors. In that report, analysts expect DraftKings to post earnings of $0.14 per share. This would mark year-over-year growth of 126.42%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.26 billion, indicating a 47.65% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of -$1.47 per share and a revenue of $3.7 billion, signifying shifts of +53.48% and +65.03%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% lower. Right now, DraftKings possesses a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

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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