We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DraftKings (DKNG) Stock Falls Amid Market Uptick: What Investors Need to Know
Read MoreHide Full Article
DraftKings (DKNG - Free Report) closed the most recent trading day at $35.17, moving -2.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.65%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.82%.
Shares of the company have appreciated by 3.12% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.38%, and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. In that report, analysts expect DraftKings to post earnings of $0.44 per share. This would mark year-over-year growth of 257.14%. At the same time, our most recent consensus estimate is projecting a revenue of $1.95 billion, reflecting a 40.25% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $0.84 per share and a revenue of $6.02 billion, demonstrating changes of +180% and 0%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 1.99% lower. DraftKings is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, DraftKings is holding a Forward P/E ratio of 23.62. This indicates a premium in contrast to its industry's Forward P/E of 17.2.
One should further note that DKNG currently holds a PEG ratio of 0.47. 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. As the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.68.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 195, positioning it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DraftKings (DKNG) Stock Falls Amid Market Uptick: What Investors Need to Know
DraftKings (DKNG - Free Report) closed the most recent trading day at $35.17, moving -2.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.65%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.82%.
Shares of the company have appreciated by 3.12% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.38%, and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. In that report, analysts expect DraftKings to post earnings of $0.44 per share. This would mark year-over-year growth of 257.14%. At the same time, our most recent consensus estimate is projecting a revenue of $1.95 billion, reflecting a 40.25% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $0.84 per share and a revenue of $6.02 billion, demonstrating changes of +180% and 0%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 1.99% lower. DraftKings is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, DraftKings is holding a Forward P/E ratio of 23.62. This indicates a premium in contrast to its industry's Forward P/E of 17.2.
One should further note that DKNG currently holds a PEG ratio of 0.47. 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. As the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.68.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 195, positioning it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.