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.
DraftKings (DKNG) Registers a Bigger Fall Than the Market: Important Facts to Note
Read MoreHide Full Article
DraftKings (DKNG - Free Report) closed at $24.53 in the latest trading session, marking a -2.47% move from the prior day. This change lagged the S&P 500's 0.1% loss on the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.43%.
Coming into today, shares of the company had gained 5.63% in the past month. In that same time, the Consumer Discretionary sector lost 1.78%, while the S&P 500 lost 1.34%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. In that report, analysts expect DraftKings to post earnings of $0.34 per share. This would mark a year-over-year decline of 10.53%. In the meantime, our current consensus estimate forecasts the revenue to be $1.57 billion, indicating a 3.85% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.15 per share and revenue of $6.8 billion, which would represent changes of +74.24% and +12.38%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, DraftKings holds a Zacks Rank of #3 (Hold).
Looking at valuation, DraftKings is presently trading at a Forward P/E ratio of 21.82. For comparison, its industry has an average Forward P/E of 17.02, which means DraftKings is trading at a premium to the group.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 24% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
DraftKings (DKNG) Registers a Bigger Fall Than the Market: Important Facts to Note
DraftKings (DKNG - Free Report) closed at $24.53 in the latest trading session, marking a -2.47% move from the prior day. This change lagged the S&P 500's 0.1% loss on the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.43%.
Coming into today, shares of the company had gained 5.63% in the past month. In that same time, the Consumer Discretionary sector lost 1.78%, while the S&P 500 lost 1.34%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. In that report, analysts expect DraftKings to post earnings of $0.34 per share. This would mark a year-over-year decline of 10.53%. In the meantime, our current consensus estimate forecasts the revenue to be $1.57 billion, indicating a 3.85% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.15 per share and revenue of $6.8 billion, which would represent changes of +74.24% and +12.38%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, DraftKings holds a Zacks Rank of #3 (Hold).
Looking at valuation, DraftKings is presently trading at a Forward P/E ratio of 21.82. For comparison, its industry has an average Forward P/E of 17.02, which means DraftKings is trading at a premium to the group.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 24% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.