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DraftKings (DKNG) Exceeds Market Returns: Some Facts to Consider
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DraftKings (DKNG - Free Report) closed the latest trading day at $41.51, indicating a +1.29% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.53%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.22%.
The company's stock has climbed by 6.25% in the past month, exceeding the Consumer Discretionary sector's loss of 0.2% and the S&P 500's gain of 2.69%.
The upcoming earnings release of DraftKings will be of great interest to investors. The company's earnings per share (EPS) are projected to be -$0.15, reflecting a 50% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.43 billion, showing a 16.36% escalation compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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.
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 0.53% rise in the Zacks Consensus EPS estimate. DraftKings is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, DraftKings is presently trading at a Forward P/E ratio of 97.23. Its industry sports an average Forward P/E of 17.9, so one might conclude that DraftKings is trading at a premium comparatively.
Also, we should mention that DKNG has a PEG ratio of 3.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DKNG's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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DraftKings (DKNG) Exceeds Market Returns: Some Facts to Consider
DraftKings (DKNG - Free Report) closed the latest trading day at $41.51, indicating a +1.29% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.53%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.22%.
The company's stock has climbed by 6.25% in the past month, exceeding the Consumer Discretionary sector's loss of 0.2% and the S&P 500's gain of 2.69%.
The upcoming earnings release of DraftKings will be of great interest to investors. The company's earnings per share (EPS) are projected to be -$0.15, reflecting a 50% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.43 billion, showing a 16.36% escalation compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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.
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 0.53% rise in the Zacks Consensus EPS estimate. DraftKings is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, DraftKings is presently trading at a Forward P/E ratio of 97.23. Its industry sports an average Forward P/E of 17.9, so one might conclude that DraftKings is trading at a premium comparatively.
Also, we should mention that DKNG has a PEG ratio of 3.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DKNG's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.