We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DraftKings (DKNG) Laps the Stock Market: Here's Why
Read MoreHide Full Article
DraftKings (DKNG - Free Report) closed the most recent trading day at $42.80, moving +1.09% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.61%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.95%.
Prior to today's trading, shares of the company had gained 12.73% outpaced the Consumer Discretionary sector's gain of 5.12% and the S&P 500's gain of 3.85%.
The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. The company is expected to report EPS of $0.41, up 241.67% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.39 billion, indicating a 26.21% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $6.26 billion, which would represent changes of +227.62% and +31.23%, respectively, from the prior year.
Any recent changes to analyst estimates for DraftKings should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 9.26% decrease. DraftKings presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, DraftKings is holding a Forward P/E ratio of 31.72. This denotes a premium relative to the industry average Forward P/E of 22.96.
It's also important to note that DKNG currently trades at a PEG ratio of 0.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.72.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DraftKings (DKNG) Laps the Stock Market: Here's Why
DraftKings (DKNG - Free Report) closed the most recent trading day at $42.80, moving +1.09% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.61%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.95%.
Prior to today's trading, shares of the company had gained 12.73% outpaced the Consumer Discretionary sector's gain of 5.12% and the S&P 500's gain of 3.85%.
The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. The company is expected to report EPS of $0.41, up 241.67% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.39 billion, indicating a 26.21% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $6.26 billion, which would represent changes of +227.62% and +31.23%, respectively, from the prior year.
Any recent changes to analyst estimates for DraftKings should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 9.26% decrease. DraftKings presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, DraftKings is holding a Forward P/E ratio of 31.72. This denotes a premium relative to the industry average Forward P/E of 22.96.
It's also important to note that DKNG currently trades at a PEG ratio of 0.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.72.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.