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DraftKings (DKNG) Beats Stock Market Upswing: What Investors Need to Know

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DraftKings (DKNG - Free Report) closed the most recent trading day at $35.87, moving +0.22% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.04%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.03%.

Shares of the company have depreciated by 6.48% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 5.28% and the S&P 500's gain of 5.28%.

The upcoming earnings release of DraftKings will be of great interest to investors. The company is predicted to post an EPS of $0.14, indicating a 126.42% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.26 billion, showing a 47.65% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$1.47 per share and a revenue of $3.7 billion, representing changes of +53.48% and +65.03%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DraftKings. These revisions help to show the ever-changing nature of near-term business trends. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.92% lower. DraftKings is currently a Zacks Rank #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 250 industries.

The Zacks Industry Rank is ordered 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.

To follow DKNG in the coming trading sessions, be sure to utilize Zacks.com.


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