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DraftKings (DKNG) Rises Higher Than Market: Key Facts

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DraftKings (DKNG - Free Report) closed the most recent trading day at $38.69, moving +0.6% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.53% for the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.19%.

Coming into today, shares of the company had gained 7.46% in the past month. In that same time, the Consumer Discretionary sector gained 0.31%, while the S&P 500 gained 2.48%.

The upcoming earnings release of DraftKings will be of great interest to investors. On that day, DraftKings is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 118.87%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.23 billion, indicating a 44.39% increase compared to the same quarter of the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 5.71% higher within the past month. At present, DraftKings boasts a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 41% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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