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DraftKings (DKNG) Gains But Lags Market: What You Should Know

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DraftKings (DKNG - Free Report) closed at $49.33 in the latest trading session, marking a +0.18% move from the prior day. This move lagged the S&P 500's daily gain of 1.02%.

Coming into today, shares of the company had lost 3.56% in the past month. In that same time, the Consumer Discretionary sector lost 2.13%, while the S&P 500 gained 3.01%.

Investors will be hoping for strength from DKNG as it approaches its next earnings release, which is expected to be August 6, 2021. In that report, analysts expect DKNG to post earnings of -$0.61 per share. This would mark a year-over-year decline of 177.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $240.84 million, up 239.55% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$2.82 per share and revenue of $1.13 billion, which would represent changes of -2.17% and +83.6%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DKNG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DKNG is currently a Zacks Rank #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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