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DraftKings (DKNG) Stock Sinks As Market Gains: What You Should Know

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DraftKings (DKNG - Free Report) closed at $52.63 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's daily gain of 0.95%.

Coming into today, shares of the company had lost 6.55% in the past month. In that same time, the Consumer Discretionary sector lost 0.92%, while the S&P 500 lost 1.87%.

DKNG will be looking to display strength as it nears its next earnings release. On that day, DKNG is projected to report earnings of -$1.07 per share, which would represent a year-over-year decline of 9.18%. Our most recent consensus estimate is calling for quarterly revenue of $220.99 million, up 66.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$3.20 per share and revenue of $1.27 billion. These totals would mark changes of -15.94% and +106.07%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for DKNG. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 #4 (Sell).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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