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.
Here's Why DraftKings (DKNG) Fell More Than Broader Market
Read MoreHide Full Article
In the latest trading session, DraftKings (DKNG - Free Report) closed at $24.33, marking a -1.26% move from the previous day. This change lagged the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the company had gained 2.5% over the past month, outpacing the Consumer Discretionary sector's loss of 5.62% and the S&P 500's loss of 2.43%.
The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. In that report, analysts expect DraftKings to post earnings of -$0.09 per share. This would mark year-over-year growth of 65.38%. Our most recent consensus estimate is calling for quarterly revenue of $1.44 billion, up 25.53% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.99 per share and a revenue of $6.73 billion, demonstrating changes of +50% and +11.13%, respectively, from the preceding year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.55% downward. As of now, DraftKings holds a Zacks Rank of #3 (Hold).
In the context of valuation, DraftKings is at present trading with a Forward P/E ratio of 24.81. This expresses a premium compared to the average Forward P/E of 17 of its industry.
It is also worth noting that DKNG currently has a PEG ratio of 0.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.1.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why DraftKings (DKNG) Fell More Than Broader Market
In the latest trading session, DraftKings (DKNG - Free Report) closed at $24.33, marking a -1.26% move from the previous day. This change lagged the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the company had gained 2.5% over the past month, outpacing the Consumer Discretionary sector's loss of 5.62% and the S&P 500's loss of 2.43%.
The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. In that report, analysts expect DraftKings to post earnings of -$0.09 per share. This would mark year-over-year growth of 65.38%. Our most recent consensus estimate is calling for quarterly revenue of $1.44 billion, up 25.53% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.99 per share and a revenue of $6.73 billion, demonstrating changes of +50% and +11.13%, respectively, from the preceding year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.55% downward. As of now, DraftKings holds a Zacks Rank of #3 (Hold).
In the context of valuation, DraftKings is at present trading with a Forward P/E ratio of 24.81. This expresses a premium compared to the average Forward P/E of 17 of its industry.
It is also worth noting that DKNG currently has a PEG ratio of 0.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.1.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.