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DraftKings (DKNG) Stock Dips While Market Gains: Key Facts

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In the latest close session, DraftKings (DKNG - Free Report) was down 1.74% at $44.04. The stock fell short of the S&P 500, which registered a gain of 0.07% for the day. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.18%.

Shares of the company have appreciated by 4.87% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 4.6%, and lagging the S&P 500's gain of 5.71%.

Market participants will be closely following the financial results of DraftKings in its upcoming release. The company plans to announce its earnings on August 6, 2025. The company is forecasted to report an EPS of $0.41, showcasing a 241.67% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.42 billion, indicating a 28.28% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.33 per share and a revenue of $6.28 billion, signifying shifts of +226.67% and +31.66%, respectively, from the last year.

Any recent changes to analyst estimates for DraftKings should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 moved 18.97% lower. Right now, DraftKings possesses a Zacks Rank of #3 (Hold).

Digging into valuation, DraftKings currently has a Forward P/E ratio of 33.76. For comparison, its industry has an average Forward P/E of 22.76, which means DraftKings is trading at a premium to the group.

We can also see that DKNG currently has a PEG ratio of 0.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DKNG's industry had an average PEG ratio of 1.67 as of yesterday's close.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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