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DraftKings (DKNG) Stock Falls Amid Market Uptick: What Investors Need to Know

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The latest trading session saw DraftKings (DKNG - Free Report) ending at $37.67, denoting a -0.87% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.49%.

The company's shares have seen an increase of 3.8% over the last month, surpassing the Consumer Discretionary sector's gain of 2.11% and the S&P 500's gain of 3.22%.

The upcoming earnings release of DraftKings will be of great interest to investors. In that report, analysts expect DraftKings to post earnings of $0.01 per share. This would mark year-over-year growth of 105.88%. Our most recent consensus estimate is calling for quarterly revenue of $1.12 billion, up 27.64% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.22 per share and a revenue of $4.97 billion, representing changes of +87.28% and +35.47%, 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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, there's been a 19.53% fall in the Zacks Consensus EPS estimate. DraftKings is currently a Zacks Rank #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 71, finds itself in the top 29% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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