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

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In the latest trading session, DraftKings (DKNG - Free Report) closed at $18.67, marking a +0.38% move from the previous day. This change lagged the S&P 500's 0.69% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Heading into today, shares of the company had gained 2.54% over the past month, outpacing the Consumer Discretionary sector's loss of 11.32% and the S&P 500's loss of 9.94% in that time.

DraftKings will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$1.07, up 20.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $432.56 million, up 103.25% from the prior-year quarter.

DKNG's full-year Zacks Consensus Estimates are calling for earnings of -$3.07 per share and revenue of $2.14 billion. These results would represent year-over-year changes of +18.78% and +65.28%, respectively.

It is also important to note the recent changes to analyst estimates for DraftKings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. DraftKings is holding a Zacks Rank of #3 (Hold) right now.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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.

You can find more information on all of these metrics, and much more, on

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