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DraftKings (DKNG) Dips More Than Broader Market: What You Should Know

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DraftKings (DKNG - Free Report) closed at $45.06 in the latest trading session, marking a -1.52% move from the prior day. This move lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.74%, while the tech-heavy Nasdaq depreciated by 0.03%.

Shares of the company have appreciated by 10.72% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 2.48%, and the S&P 500's gain of 2.68%.

The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2025. It is anticipated that the company will report an EPS of $0.41, marking a 241.67% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.42 billion, showing a 28.28% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.33 per share and a revenue of $6.28 billion, demonstrating changes of +226.67% and +31.66%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for DraftKings. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 18.97% lower. DraftKings currently has a Zacks Rank of #3 (Hold).

In terms of valuation, DraftKings is presently being traded at a Forward P/E ratio of 34.46. This signifies a premium in comparison to the average Forward P/E of 23.01 for its industry.

We can additionally observe that DKNG currently boasts a PEG ratio of 0.7. 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. Gaming stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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