In the latest close session, DraftKings (DKNG) was up +1.24% at $26.21. This move outpaced the S&P 500's daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.12%.
Shares of the company witnessed a gain of 3.85% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 2.31%, and the S&P 500's loss of 0.9%.
The upcoming earnings release of DraftKings will be of great interest to investors. In that report, analysts expect DraftKings to post earnings of $0.34 per share. This would mark a year-over-year decline of 10.53%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.57 billion, indicating a 3.85% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.15 per share and a revenue of $6.8 billion, indicating changes of +74.24% and +12.38%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for DraftKings. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, DraftKings boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, DraftKings is holding a Forward P/E ratio of 22.46. This expresses a premium compared to the average Forward P/E of 18.41 of its industry.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 177, placing it within the bottom 29% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DraftKings Inc. (DKNG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).