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) Registers a Bigger Fall Than the Market: Important Facts to Note
Read MoreHide Full Article
DraftKings (DKNG - Free Report) closed the most recent trading day at $32.62, moving -8.01% from the previous trading session. This change lagged the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
The stock of company has risen by 3.71% in the past month, leading the Consumer Discretionary sector's loss of 1.49% and the S&P 500's gain of 1.99%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company is forecasted to report an EPS of $0.45, showcasing a 260.71% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.95 billion, indicating a 40.25% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.85 per share and revenue of $6.02 billion. These totals would mark changes of +180.95% and 0%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DraftKings. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, DraftKings is holding a Forward P/E ratio of 23.28. Its industry sports an average Forward P/E of 17.39, so one might conclude that DraftKings is trading at a premium comparatively.
Investors should also note that DKNG has a PEG ratio of 0.46 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Gaming industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 19% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DraftKings (DKNG) Registers a Bigger Fall Than the Market: Important Facts to Note
DraftKings (DKNG - Free Report) closed the most recent trading day at $32.62, moving -8.01% from the previous trading session. This change lagged the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
The stock of company has risen by 3.71% in the past month, leading the Consumer Discretionary sector's loss of 1.49% and the S&P 500's gain of 1.99%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company is forecasted to report an EPS of $0.45, showcasing a 260.71% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.95 billion, indicating a 40.25% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.85 per share and revenue of $6.02 billion. These totals would mark changes of +180.95% and 0%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DraftKings. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, DraftKings is holding a Forward P/E ratio of 23.28. Its industry sports an average Forward P/E of 17.39, so one might conclude that DraftKings is trading at a premium comparatively.
Investors should also note that DKNG has a PEG ratio of 0.46 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Gaming industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 19% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.