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DraftKings (DKNG) Surpasses Market Returns: Some Facts Worth Knowing
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DraftKings (DKNG - Free Report) closed at $22.51 in the latest trading session, marking a +1.24% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 1.23%.
Coming into today, shares of the company had lost 14.07% in the past month. In that same time, the Consumer Discretionary sector lost 0.69%, while the S&P 500 gained 0.63%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. The company's upcoming EPS is projected at $0.23, signifying a 91.67% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.65 billion, showing a 17.42% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.15 per share and revenue of $6.81 billion. These totals would mark changes of +74.24% and +12.52%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for DraftKings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 33.43% lower. Currently, DraftKings is carrying a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 19.37. This valuation marks a premium compared to its industry average Forward P/E of 16.69.
It's also important to note that DKNG currently trades at a PEG ratio of 0.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.45.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DraftKings (DKNG) Surpasses Market Returns: Some Facts Worth Knowing
DraftKings (DKNG - Free Report) closed at $22.51 in the latest trading session, marking a +1.24% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 1.23%.
Coming into today, shares of the company had lost 14.07% in the past month. In that same time, the Consumer Discretionary sector lost 0.69%, while the S&P 500 gained 0.63%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. The company's upcoming EPS is projected at $0.23, signifying a 91.67% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.65 billion, showing a 17.42% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.15 per share and revenue of $6.81 billion. These totals would mark changes of +74.24% and +12.52%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for DraftKings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 33.43% lower. Currently, DraftKings is carrying a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 19.37. This valuation marks a premium compared to its industry average Forward P/E of 16.69.
It's also important to note that DKNG currently trades at a PEG ratio of 0.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.45.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.