In the latest trading session, DraftKings (DKNG) closed at $24.62, marking a +2.12% move from the previous day. This change outpaced the S&P 500's 0.21% gain on the day. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, lost 0.22%.
The stock of company has fallen by 6.55% in the past month, lagging the Consumer Discretionary sector's loss of 0.15% and the S&P 500's gain of 1.7%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. The company is slated to reveal its earnings on August 6, 2026. The company's earnings per share (EPS) are projected to be $0.22, reflecting a 42.11% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.5 billion, showing a 0.77% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.09 per share and a revenue of $6.79 billion, signifying shifts of +65.15% and +12.08%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for DraftKings. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 10.42% lower. DraftKings is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, DraftKings is currently being traded at a Forward P/E ratio of 22.22. This denotes a premium relative to the industry average Forward P/E of 18.7.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 26% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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DraftKings Inc. (DKNG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).