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DraftKings (DKNG) Suffers a Larger Drop Than the General Market: Key Insights
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DraftKings (DKNG - Free Report) closed at $25.70 in the latest trading session, marking a -2.61% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.37% for the day. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq decreased by 1.33%.
Shares of the company have appreciated by 5.06% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 1.15%, and the S&P 500's gain of 2.02%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. The company is forecasted to report an EPS of $0.34, showcasing a 10.53% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.57 billion, reflecting a 3.85% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.15 per share and a revenue of $6.8 billion, demonstrating changes of +74.24% and +12.38%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DraftKings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. As of now, DraftKings holds a Zacks Rank of #3 (Hold).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 22.9. This valuation marks a premium compared to its industry average Forward P/E of 16.91.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 33% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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DraftKings (DKNG) Suffers a Larger Drop Than the General Market: Key Insights
DraftKings (DKNG - Free Report) closed at $25.70 in the latest trading session, marking a -2.61% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.37% for the day. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq decreased by 1.33%.
Shares of the company have appreciated by 5.06% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 1.15%, and the S&P 500's gain of 2.02%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. The company is forecasted to report an EPS of $0.34, showcasing a 10.53% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.57 billion, reflecting a 3.85% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.15 per share and a revenue of $6.8 billion, demonstrating changes of +74.24% and +12.38%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DraftKings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. As of now, DraftKings holds a Zacks Rank of #3 (Hold).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 22.9. This valuation marks a premium compared to its industry average Forward P/E of 16.91.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 33% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.