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.
Why DraftKings (DKNG) Dipped More Than Broader Market Today
Read MoreHide Full Article
DraftKings (DKNG - Free Report) closed at $23.14 in the latest trading session, marking a -1.11% move from the prior day. This move lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq added 0.04%.
Shares of the company have appreciated by 8.23% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 3.86%, and lagging the S&P 500's gain of 12.24%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company plans to announce its earnings on May 7, 2026. The company is forecasted to report an EPS of $0.22, showcasing a 83.33% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 17.04% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.13 per share and revenue of $6.81 billion, indicating changes of +71.21% and +12.42%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.91% lower within the past month. DraftKings presently features a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 20.71. This signifies a premium in comparison to the average Forward P/E of 17.48 for its industry.
It's also important to note that DKNG currently trades at a PEG ratio of 0.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Gaming industry currently had an average PEG ratio of 1.36 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why DraftKings (DKNG) Dipped More Than Broader Market Today
DraftKings (DKNG - Free Report) closed at $23.14 in the latest trading session, marking a -1.11% move from the prior day. This move lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq added 0.04%.
Shares of the company have appreciated by 8.23% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 3.86%, and lagging the S&P 500's gain of 12.24%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company plans to announce its earnings on May 7, 2026. The company is forecasted to report an EPS of $0.22, showcasing a 83.33% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 17.04% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.13 per share and revenue of $6.81 billion, indicating changes of +71.21% and +12.42%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.91% lower within the past month. DraftKings presently features a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 20.71. This signifies a premium in comparison to the average Forward P/E of 17.48 for its industry.
It's also important to note that DKNG currently trades at a PEG ratio of 0.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Gaming industry currently had an average PEG ratio of 1.36 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.