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DraftKings (DKNG) Stock Declines While Market Improves: Some Information for Investors

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The most recent trading session ended with DraftKings (DKNG - Free Report) standing at $41.74, reflecting a -0.5% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.23%. Meanwhile, the Dow gained 0.37%, and the Nasdaq, a tech-heavy index, added 0.07%.

Shares of the company witnessed a gain of 24.81% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 2.45% and the S&P 500's gain of 5.3%.

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 February 15, 2024. In that report, analysts expect DraftKings to post earnings of $0.06 per share. This would mark year-over-year growth of 111.32%. Alongside, our most recent consensus estimate is anticipating revenue of $1.22 billion, indicating a 42.88% upward movement from the same quarter last year.

Investors should also note any recent changes to analyst estimates for DraftKings. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.23% higher. Currently, DraftKings is carrying 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 104, positioning it in the top 42% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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