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Why DraftKings (DKNG) Dipped More Than Broader Market Today

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DraftKings (DKNG - Free Report) closed the latest trading day at $41.78, indicating a -0.78% change from the previous session's end. This change lagged the S&P 500's 0.65% loss on the day. Elsewhere, the Dow saw a downswing of 0.49%, while the tech-heavy Nasdaq depreciated by 0.96%.

The the stock of company has fallen by 5.29% in the past month, lagging the Consumer Discretionary sector's gain of 0.05% and the S&P 500's gain of 3.27%.

The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. The company is expected to report EPS of -$0.28, up 67.82% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.12 billion, up 45.5% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.24 per share and revenue of $4.82 billion, which would represent changes of +86.13% and +31.46%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for DraftKings. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.3% lower. DraftKings currently has 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 141, which puts it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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