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Here's Why DraftKings (DKNG) Gained But Lagged the Market Today
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The latest trading session saw DraftKings (DKNG - Free Report) ending at $34.18, denoting a +0.38% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 2.03%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 2.74%.
Heading into today, shares of the company had lost 9.63% over the past month, lagging the Consumer Discretionary sector's loss of 4.94% and the S&P 500's loss of 5.07% in that time.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 8, 2025. In that report, analysts expect DraftKings to post earnings of $0.18 per share. This would mark year-over-year growth of 160%. In the meantime, our current consensus estimate forecasts the revenue to be $1.45 billion, indicating a 23.73% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.65 per share and revenue of $6.4 billion, which would represent changes of +257.14% and +34.2%, respectively, from the prior year.
Any recent changes to analyst estimates for DraftKings should also be noted by investors. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, there's been a 35.12% rise in the Zacks Consensus EPS estimate. DraftKings is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, DraftKings currently has a Forward P/E ratio of 20.7. This denotes a premium relative to the industry's average Forward P/E of 16.52.
It is also worth noting that DKNG currently has a PEG ratio of 0.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.26.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why DraftKings (DKNG) Gained But Lagged the Market Today
The latest trading session saw DraftKings (DKNG - Free Report) ending at $34.18, denoting a +0.38% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 2.03%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 2.74%.
Heading into today, shares of the company had lost 9.63% over the past month, lagging the Consumer Discretionary sector's loss of 4.94% and the S&P 500's loss of 5.07% in that time.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 8, 2025. In that report, analysts expect DraftKings to post earnings of $0.18 per share. This would mark year-over-year growth of 160%. In the meantime, our current consensus estimate forecasts the revenue to be $1.45 billion, indicating a 23.73% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.65 per share and revenue of $6.4 billion, which would represent changes of +257.14% and +34.2%, respectively, from the prior year.
Any recent changes to analyst estimates for DraftKings should also be noted by investors. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, there's been a 35.12% rise in the Zacks Consensus EPS estimate. DraftKings is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, DraftKings currently has a Forward P/E ratio of 20.7. This denotes a premium relative to the industry's average Forward P/E of 16.52.
It is also worth noting that DKNG currently has a PEG ratio of 0.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.26.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.