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DraftKings (DKNG) Suffers a Larger Drop Than the General Market: Key Insights
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DraftKings (DKNG - Free Report) closed at $32.68 in the latest trading session, marking a -7.16% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 2.71% for the day. At the same time, the Dow lost 1.9%, and the tech-heavy Nasdaq lost 3.56%.
The stock of company has fallen by 23.26% in the past month, lagging the Consumer Discretionary sector's loss of 3.63% and the S&P 500's gain of 3.5%.
The upcoming earnings release of DraftKings will be of great interest to investors. The company is expected to report EPS of -$0.02, up 96.67% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.35 billion, indicating a 23.57% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.36 per share and a revenue of $6.35 billion, demonstrating changes of +229.52% and +33.09%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for DraftKings. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 11.34% higher within the past month. At present, DraftKings boasts a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that DraftKings has a Forward P/E ratio of 25.95 right now. This represents a premium compared to its industry average Forward P/E of 23.73.
It's also important to note that DKNG currently trades at a PEG ratio of 0.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Gaming industry had an average PEG ratio of 1.9.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 60, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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DraftKings (DKNG) Suffers a Larger Drop Than the General Market: Key Insights
DraftKings (DKNG - Free Report) closed at $32.68 in the latest trading session, marking a -7.16% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 2.71% for the day. At the same time, the Dow lost 1.9%, and the tech-heavy Nasdaq lost 3.56%.
The stock of company has fallen by 23.26% in the past month, lagging the Consumer Discretionary sector's loss of 3.63% and the S&P 500's gain of 3.5%.
The upcoming earnings release of DraftKings will be of great interest to investors. The company is expected to report EPS of -$0.02, up 96.67% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.35 billion, indicating a 23.57% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.36 per share and a revenue of $6.35 billion, demonstrating changes of +229.52% and +33.09%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for DraftKings. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 11.34% higher within the past month. At present, DraftKings boasts a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that DraftKings has a Forward P/E ratio of 25.95 right now. This represents a premium compared to its industry average Forward P/E of 23.73.
It's also important to note that DKNG currently trades at a PEG ratio of 0.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Gaming industry had an average PEG ratio of 1.9.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 60, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.