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DraftKings (DKNG) Ascends While Market Falls: Some Facts to Note

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The most recent trading session ended with DraftKings (DKNG - Free Report) standing at $26.64, reflecting a +1.6% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 1.12%, and the Nasdaq, a tech-heavy index, added 0.38%.

Coming into today, shares of the company had lost 9.37% in the past month. In that same time, the Consumer Discretionary sector lost 2.79%, while the S&P 500 lost 2.65%.

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 November 2, 2023. On that day, DraftKings is projected to report earnings of -$0.69 per share, which would represent year-over-year growth of 31%. Our most recent consensus estimate is calling for quarterly revenue of $702.26 million, up 39.91% from the year-ago period.

DKNG's full-year Zacks Consensus Estimates are calling for earnings of -$1.62 per share and revenue of $3.54 billion. These results would represent year-over-year changes of +48.73% and +58.19%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.21% higher. DraftKings is currently sporting a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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