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DraftKings (DKNG) Rises But Trails Market: What Investors Should Know

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The latest trading session saw DraftKings (DKNG - Free Report) ending at $45.54, denoting a +0.07% adjustment from its last day's close. This change lagged the S&P 500's 0.15% gain on the day. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.32%.

Shares of the company witnessed a gain of 9.35% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 0.89% and the S&P 500's gain of 1.65%.

The upcoming earnings release of DraftKings will be of great interest to investors. 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, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 45.5% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.24 per share and revenue of $4.82 billion. These totals would mark changes of +86.13% and +31.46%, respectively, from last year.

Investors might also notice recent changes to analyst estimates 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.

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 remained unchanged. 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 165, positioning it in the bottom 35% 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.

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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