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DraftKings (DKNG) Rises Higher Than Market: Key Facts
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In the latest trading session, DraftKings (DKNG - Free Report) closed at $43.30, marking a +1.55% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.48%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.94%.
Heading into today, shares of the company had lost 6.59% over the past month, lagging the Consumer Discretionary sector's gain of 1.64% and the S&P 500's gain of 2.46%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company is forecasted to report an EPS of $0.01, showcasing a 101.67% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.37 billion, indicating a 25.4% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.33 per share and a revenue of $6.36 billion, signifying shifts of +226.67% and +33.4%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for DraftKings. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has remained steady. DraftKings currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DraftKings has a Forward P/E ratio of 32.06 right now. For comparison, its industry has an average Forward P/E of 23.86, which means DraftKings is trading at a premium to the group.
It's also important to note that DKNG currently trades at a PEG ratio of 0.56. 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. The average PEG ratio for the Gaming industry stood at 1.81 at the close of the market yesterday.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 38% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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DraftKings (DKNG) Rises Higher Than Market: Key Facts
In the latest trading session, DraftKings (DKNG - Free Report) closed at $43.30, marking a +1.55% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.48%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.94%.
Heading into today, shares of the company had lost 6.59% over the past month, lagging the Consumer Discretionary sector's gain of 1.64% and the S&P 500's gain of 2.46%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company is forecasted to report an EPS of $0.01, showcasing a 101.67% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.37 billion, indicating a 25.4% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.33 per share and a revenue of $6.36 billion, signifying shifts of +226.67% and +33.4%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for DraftKings. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has remained steady. DraftKings currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DraftKings has a Forward P/E ratio of 32.06 right now. For comparison, its industry has an average Forward P/E of 23.86, which means DraftKings is trading at a premium to the group.
It's also important to note that DKNG currently trades at a PEG ratio of 0.56. 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. The average PEG ratio for the Gaming industry stood at 1.81 at the close of the market yesterday.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 38% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.