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DraftKings (DKNG) Laps the Stock Market: Here's Why
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In the latest close session, DraftKings (DKNG - Free Report) was up +1.53% at $21.23. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.83%.
The company's shares have seen a decrease of 5.04% over the last month, not keeping up with the Consumer Discretionary sector's gain of 4.8% and the S&P 500's loss of 1.21%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company plans to announce its earnings on November 5, 2026. On that day, DraftKings is projected to report earnings of -$0.18 per share, which would represent year-over-year growth of 30.77%. Simultaneously, our latest consensus estimate expects the revenue to be $1.4 billion, showing a 22.36% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.85 per share and revenue of $6.69 billion. These totals would mark changes of +28.79% and +10.46%, respectively, from last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business 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 moved 28.28% lower. At present, DraftKings boasts a Zacks Rank of #3 (Hold).
In terms of valuation, DraftKings is presently being traded at a Forward P/E ratio of 24.6. Its industry sports an average Forward P/E of 15.85, so one might conclude that DraftKings is trading at a premium comparatively.
We can also see that DKNG currently has a PEG ratio of 0.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.09.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 195, this industry ranks in the bottom 21% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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DraftKings (DKNG) Laps the Stock Market: Here's Why
In the latest close session, DraftKings (DKNG - Free Report) was up +1.53% at $21.23. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.83%.
The company's shares have seen a decrease of 5.04% over the last month, not keeping up with the Consumer Discretionary sector's gain of 4.8% and the S&P 500's loss of 1.21%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company plans to announce its earnings on November 5, 2026. On that day, DraftKings is projected to report earnings of -$0.18 per share, which would represent year-over-year growth of 30.77%. Simultaneously, our latest consensus estimate expects the revenue to be $1.4 billion, showing a 22.36% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.85 per share and revenue of $6.69 billion. These totals would mark changes of +28.79% and +10.46%, respectively, from last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business 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 moved 28.28% lower. At present, DraftKings boasts a Zacks Rank of #3 (Hold).
In terms of valuation, DraftKings is presently being traded at a Forward P/E ratio of 24.6. Its industry sports an average Forward P/E of 15.85, so one might conclude that DraftKings is trading at a premium comparatively.
We can also see that DKNG currently has a PEG ratio of 0.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.09.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 195, this industry ranks in the bottom 21% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.