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DraftKings (DKNG) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest close session, DraftKings (DKNG - Free Report) was down 2.26% at $22.47. The stock's change was less than the S&P 500's daily gain of 1.05%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 1.64%.
The stock of company has fallen by 1.37% in the past month, lagging the Consumer Discretionary sector's gain of 5.79% and the S&P 500's gain of 8.59%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. On that day, DraftKings is projected to report earnings of $0.22 per share, which would represent year-over-year growth of 83.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.65 billion, indicating a 17.04% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.13 per share and a revenue of $6.81 billion, representing changes of +71.21% and +12.42%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 3.91% lower. Right now, DraftKings possesses a Zacks Rank of #5 (Strong Sell).
Looking at valuation, DraftKings is presently trading at a Forward P/E ratio of 20.34. This valuation marks a premium compared to its industry average Forward P/E of 17.34.
It is also worth noting that DKNG currently has a PEG ratio of 0.47. 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. As the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.44.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 43% 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.
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) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest close session, DraftKings (DKNG - Free Report) was down 2.26% at $22.47. The stock's change was less than the S&P 500's daily gain of 1.05%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 1.64%.
The stock of company has fallen by 1.37% in the past month, lagging the Consumer Discretionary sector's gain of 5.79% and the S&P 500's gain of 8.59%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. On that day, DraftKings is projected to report earnings of $0.22 per share, which would represent year-over-year growth of 83.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.65 billion, indicating a 17.04% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.13 per share and a revenue of $6.81 billion, representing changes of +71.21% and +12.42%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 3.91% lower. Right now, DraftKings possesses a Zacks Rank of #5 (Strong Sell).
Looking at valuation, DraftKings is presently trading at a Forward P/E ratio of 20.34. This valuation marks a premium compared to its industry average Forward P/E of 17.34.
It is also worth noting that DKNG currently has a PEG ratio of 0.47. 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. As the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.44.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.