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DraftKings (DKNG) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, DraftKings (DKNG - Free Report) closed at $22.90, marking a -1.12% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.44%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the company had lost 7.91% over the past month, lagging the Consumer Discretionary sector's loss of 4.69% and the S&P 500's loss of 3.31%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company is forecasted to report an EPS of $0.23, showcasing a 91.67% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.67 billion, up 18.58% from the prior-year quarter.
DKNG's full-year Zacks Consensus Estimates are calling for earnings of $1.15 per share and revenue of $6.81 billion. These results would represent year-over-year changes of +74.24% and +12.49%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 33.43% lower. DraftKings currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, DraftKings is currently being traded at a Forward P/E ratio of 20.18. This represents a premium compared to its industry average Forward P/E of 16.26.
Investors should also note that DKNG has a PEG ratio of 0.46 right now. 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. Gaming stocks are, on average, holding a PEG ratio of 1.48 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 37% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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DraftKings (DKNG) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, DraftKings (DKNG - Free Report) closed at $22.90, marking a -1.12% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.44%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the company had lost 7.91% over the past month, lagging the Consumer Discretionary sector's loss of 4.69% and the S&P 500's loss of 3.31%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company is forecasted to report an EPS of $0.23, showcasing a 91.67% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.67 billion, up 18.58% from the prior-year quarter.
DKNG's full-year Zacks Consensus Estimates are calling for earnings of $1.15 per share and revenue of $6.81 billion. These results would represent year-over-year changes of +74.24% and +12.49%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 33.43% lower. DraftKings currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, DraftKings is currently being traded at a Forward P/E ratio of 20.18. This represents a premium compared to its industry average Forward P/E of 16.26.
Investors should also note that DKNG has a PEG ratio of 0.46 right now. 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. Gaming stocks are, on average, holding a PEG ratio of 1.48 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 37% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.