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DraftKings (DKNG) Exceeds Market Returns: Some Facts to Consider
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DraftKings (DKNG - Free Report) closed the most recent trading day at $19.31, moving +2.17% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.33%. On the other hand, the Dow registered a gain of 1.08%, and the technology-centric Nasdaq increased by 0.08%.
Prior to today's trading, shares of the company had lost 22.32% lagged the Consumer Discretionary sector's loss of 3.52% and the S&P 500's gain of 1.41%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.1, indicating a 61.54% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.44 billion, indicating a 25.53% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $0.9 per share and a revenue of $6.72 billion, demonstrating changes of +36.36% and +11%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 19.05% decrease. Currently, DraftKings is carrying a Zacks Rank of #5 (Strong Sell).
Digging into valuation, DraftKings currently has a Forward P/E ratio of 21. This indicates a premium in contrast to its industry's Forward P/E of 14.81.
Meanwhile, DKNG's PEG ratio is currently 0.84. 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. DKNG's industry had an average PEG ratio of 1.05 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 37% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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DraftKings (DKNG) Exceeds Market Returns: Some Facts to Consider
DraftKings (DKNG - Free Report) closed the most recent trading day at $19.31, moving +2.17% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.33%. On the other hand, the Dow registered a gain of 1.08%, and the technology-centric Nasdaq increased by 0.08%.
Prior to today's trading, shares of the company had lost 22.32% lagged the Consumer Discretionary sector's loss of 3.52% and the S&P 500's gain of 1.41%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.1, indicating a 61.54% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.44 billion, indicating a 25.53% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $0.9 per share and a revenue of $6.72 billion, demonstrating changes of +36.36% and +11%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 19.05% decrease. Currently, DraftKings is carrying a Zacks Rank of #5 (Strong Sell).
Digging into valuation, DraftKings currently has a Forward P/E ratio of 21. This indicates a premium in contrast to its industry's Forward P/E of 14.81.
Meanwhile, DKNG's PEG ratio is currently 0.84. 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. DKNG's industry had an average PEG ratio of 1.05 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 37% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.