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Here's Why DraftKings (DKNG) Fell More Than Broader Market
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DraftKings (DKNG - Free Report) closed at $30.14 in the latest trading session, marking a -1.66% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.99% for the day. Elsewhere, the Dow saw a downswing of 0.23%, while the tech-heavy Nasdaq depreciated by 1.58%.
Prior to today's trading, shares of the company had lost 12.83% lagged the Consumer Discretionary sector's loss of 12.43% and the S&P 500's gain of 3.59%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company plans to announce its earnings on November 6, 2025. The company is expected to report EPS of -$0.27, up 55% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.24 billion, indicating a 13.29% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.1 per share and a revenue of $6.21 billion, signifying shifts of +204.76% and +30.16%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 23.91% lower. At present, DraftKings boasts a Zacks Rank of #4 (Sell).
In the context of valuation, DraftKings is at present trading with a Forward P/E ratio of 27.99. This valuation marks a premium compared to its industry average Forward P/E of 24.02.
It is also worth noting that DKNG currently has a PEG ratio of 0.49. 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 1.83 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Here's Why DraftKings (DKNG) Fell More Than Broader Market
DraftKings (DKNG - Free Report) closed at $30.14 in the latest trading session, marking a -1.66% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.99% for the day. Elsewhere, the Dow saw a downswing of 0.23%, while the tech-heavy Nasdaq depreciated by 1.58%.
Prior to today's trading, shares of the company had lost 12.83% lagged the Consumer Discretionary sector's loss of 12.43% and the S&P 500's gain of 3.59%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company plans to announce its earnings on November 6, 2025. The company is expected to report EPS of -$0.27, up 55% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.24 billion, indicating a 13.29% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.1 per share and a revenue of $6.21 billion, signifying shifts of +204.76% and +30.16%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 23.91% lower. At present, DraftKings boasts a Zacks Rank of #4 (Sell).
In the context of valuation, DraftKings is at present trading with a Forward P/E ratio of 27.99. This valuation marks a premium compared to its industry average Forward P/E of 24.02.
It is also worth noting that DKNG currently has a PEG ratio of 0.49. 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 1.83 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.