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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 the most recent trading day at $18.90, moving -4.16% from the previous trading session. This change lagged the S&P 500's 1.11% loss on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1.88%.
The company's shares have seen a decrease of 19.97% over the last month, not keeping up with the Consumer Discretionary sector's loss of 1.66% and the S&P 500's gain of 2.06%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. The company is expected to report EPS of -$0.1, up 61.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.44 billion, up 25.53% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.9 per share and revenue of $6.72 billion, indicating changes of +36.36% and +11%, respectively, compared to the previous year.
Any recent changes to analyst estimates for DraftKings should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 19.05% lower. DraftKings currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note DraftKings's current valuation metrics, including its Forward P/E ratio of 21.91. Its industry sports an average Forward P/E of 15.56, so one might conclude that DraftKings is trading at a premium comparatively.
Meanwhile, DKNG's PEG ratio is currently 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Gaming stocks are, on average, holding a PEG ratio of 1.04 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 167, finds itself in the bottom 33% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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 the most recent trading day at $18.90, moving -4.16% from the previous trading session. This change lagged the S&P 500's 1.11% loss on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1.88%.
The company's shares have seen a decrease of 19.97% over the last month, not keeping up with the Consumer Discretionary sector's loss of 1.66% and the S&P 500's gain of 2.06%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. The company is expected to report EPS of -$0.1, up 61.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.44 billion, up 25.53% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.9 per share and revenue of $6.72 billion, indicating changes of +36.36% and +11%, respectively, compared to the previous year.
Any recent changes to analyst estimates for DraftKings should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 19.05% lower. DraftKings currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note DraftKings's current valuation metrics, including its Forward P/E ratio of 21.91. Its industry sports an average Forward P/E of 15.56, so one might conclude that DraftKings is trading at a premium comparatively.
Meanwhile, DKNG's PEG ratio is currently 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Gaming stocks are, on average, holding a PEG ratio of 1.04 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 167, finds itself in the bottom 33% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.