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DraftKings (DKNG) Dips More Than Broader Market: What You Should Know
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DraftKings (DKNG - Free Report) ended the recent trading session at $21.25, demonstrating a -2.52% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow saw a downswing of 0.68%, while the tech-heavy Nasdaq depreciated by 1.13%.
The company's stock has dropped by 15.47% in the past month, falling short of the Consumer Discretionary sector's loss of 7.55% and the S&P 500's gain of 1.26%.
Analysts and investors alike will be keeping a close eye on the performance of DraftKings in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.09, signifying a 65.38% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.44 billion, up 25.53% from the year-ago period.
DKNG's full-year Zacks Consensus Estimates are calling for earnings of $0.99 per share and revenue of $6.73 billion. These results would represent year-over-year changes of +50% and +11.13%, respectively.
Investors might also notice recent changes to analyst estimates for DraftKings. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been a 4.55% fall in the Zacks Consensus EPS estimate. DraftKings currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 21.95. For comparison, its industry has an average Forward P/E of 15.68, which means DraftKings is trading at a premium to the group.
Investors should also note that DKNG has a PEG ratio of 0.88 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Gaming industry had an average PEG ratio of 1.07 as trading concluded yesterday.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.
View the Zacks #1 Rank List
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DraftKings (DKNG) Dips More Than Broader Market: What You Should Know
DraftKings (DKNG - Free Report) ended the recent trading session at $21.25, demonstrating a -2.52% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow saw a downswing of 0.68%, while the tech-heavy Nasdaq depreciated by 1.13%.
The company's stock has dropped by 15.47% in the past month, falling short of the Consumer Discretionary sector's loss of 7.55% and the S&P 500's gain of 1.26%.
Analysts and investors alike will be keeping a close eye on the performance of DraftKings in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.09, signifying a 65.38% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.44 billion, up 25.53% from the year-ago period.
DKNG's full-year Zacks Consensus Estimates are calling for earnings of $0.99 per share and revenue of $6.73 billion. These results would represent year-over-year changes of +50% and +11.13%, respectively.
Investors might also notice recent changes to analyst estimates for DraftKings. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been a 4.55% fall in the Zacks Consensus EPS estimate. DraftKings currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 21.95. For comparison, its industry has an average Forward P/E of 15.68, which means DraftKings is trading at a premium to the group.
Investors should also note that DKNG has a PEG ratio of 0.88 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Gaming industry had an average PEG ratio of 1.07 as trading concluded yesterday.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.