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DraftKings (DKNG) Stock Declines While Market Improves: Some Information for Investors
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In the latest trading session, DraftKings (DKNG - Free Report) closed at $29.97, marking a -5.22% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.03%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, added 0.28%.
Heading into today, shares of the company had lost 8.24% over the past month, lagging the Consumer Discretionary sector's loss of 3.17% and the S&P 500's gain of 0.6%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. In that report, analysts expect DraftKings to post earnings of $0.45 per share. This would mark year-over-year growth of 260.71%. In the meantime, our current consensus estimate forecasts the revenue to be $1.95 billion, indicating a 39.75% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.85 per share and a revenue of $6.01 billion, signifying shifts of +180.95% and 0%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.99% fall in the Zacks Consensus EPS estimate. DraftKings is currently a Zacks Rank #4 (Sell).
With respect to valuation, DraftKings is currently being traded at a Forward P/E ratio of 20.76. This expresses a premium compared to the average Forward P/E of 16.88 of its industry.
We can also see that DKNG currently has a PEG ratio of 0.41. 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 1.68 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 215, positioning it in the bottom 13% 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.
To follow DKNG in the coming trading sessions, be sure to utilize Zacks.com.
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DraftKings (DKNG) Stock Declines While Market Improves: Some Information for Investors
In the latest trading session, DraftKings (DKNG - Free Report) closed at $29.97, marking a -5.22% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.03%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, added 0.28%.
Heading into today, shares of the company had lost 8.24% over the past month, lagging the Consumer Discretionary sector's loss of 3.17% and the S&P 500's gain of 0.6%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. In that report, analysts expect DraftKings to post earnings of $0.45 per share. This would mark year-over-year growth of 260.71%. In the meantime, our current consensus estimate forecasts the revenue to be $1.95 billion, indicating a 39.75% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.85 per share and a revenue of $6.01 billion, signifying shifts of +180.95% and 0%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.99% fall in the Zacks Consensus EPS estimate. DraftKings is currently a Zacks Rank #4 (Sell).
With respect to valuation, DraftKings is currently being traded at a Forward P/E ratio of 20.76. This expresses a premium compared to the average Forward P/E of 16.88 of its industry.
We can also see that DKNG currently has a PEG ratio of 0.41. 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 1.68 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 215, positioning it in the bottom 13% 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.
To follow DKNG in the coming trading sessions, be sure to utilize Zacks.com.