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DraftKings (DKNG) Laps the Stock Market: Here's Why

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DraftKings (DKNG - Free Report) closed the latest trading day at $41.20, indicating a +1.45% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 1.2%. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.59%.

The company's shares have seen a decrease of 14.31% over the last month, not keeping up with the Consumer Discretionary sector's loss of 6.73% and the S&P 500's loss of 4.16%.

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 May 2, 2024. The company is forecasted to report an EPS of -$0.28, showcasing a 67.82% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 45.18% 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 -$0.25 per share and revenue of $4.82 billion. These totals would mark changes of +85.55% and +31.51%, respectively, from 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been a 1.38% fall in the Zacks Consensus EPS estimate. Right now, DraftKings possesses 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 192, positioning it in the bottom 24% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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