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DraftKings (DKNG) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, DraftKings (DKNG - Free Report) closed at $45.34, marking a -6.36% move from the previous day. This change lagged the S&P 500's 1.04% loss on the day.

Coming into today, shares of the company had lost 20.77% in the past month. In that same time, the Consumer Discretionary sector lost 0.13%, while the S&P 500 gained 3.83%.

On that day, DKNG is projected to report earnings of -$0.39 per share, which would represent a year-over-year decline of 77.27%. Our most recent consensus estimate is calling for quarterly revenue of $216.44 million, up 205.14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.89 per share and revenue of $999.74 million, which would represent changes of +31.52% and +62.68%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DKNG. 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 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. The Zacks Consensus EPS estimate has moved 2.48% lower within the past month. DKNG currently has a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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.

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