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Why DraftKings (DKNG) Dipped More Than Broader Market Today
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The latest trading session saw DraftKings (DKNG - Free Report) ending at $42.11, denoting a -0.31% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.3%.
Shares of the company have depreciated by 3.74% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.42% and the S&P 500's gain of 4.42%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. In that report, analysts expect DraftKings to post earnings of -$0.28 per share. This would mark year-over-year growth of 67.82%. Meanwhile, our latest consensus estimate is calling for revenue of $1.12 billion, up 45.5% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.24 per share and revenue of $4.82 billion, indicating changes of +86.13% and +31.46%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.3% lower. As of now, DraftKings holds a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 42% echelons 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.
To follow DKNG in the coming trading sessions, be sure to utilize Zacks.com.
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Why DraftKings (DKNG) Dipped More Than Broader Market Today
The latest trading session saw DraftKings (DKNG - Free Report) ending at $42.11, denoting a -0.31% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.3%.
Shares of the company have depreciated by 3.74% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.42% and the S&P 500's gain of 4.42%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. In that report, analysts expect DraftKings to post earnings of -$0.28 per share. This would mark year-over-year growth of 67.82%. Meanwhile, our latest consensus estimate is calling for revenue of $1.12 billion, up 45.5% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.24 per share and revenue of $4.82 billion, indicating changes of +86.13% and +31.46%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.3% lower. As of now, DraftKings holds a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 42% echelons 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.
To follow DKNG in the coming trading sessions, be sure to utilize Zacks.com.