DraftKings (DKNG) closed the most recent trading day at $26.29, moving -3.24% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.
Coming into today, shares of the company had lost 5.63% in the past month. In that same time, the Consumer Discretionary sector gained 0.17%, while the S&P 500 gained 1.13%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 10.53% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.57 billion, indicating a 3.85% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.15 per share and a revenue of $6.8 billion, signifying shifts of +74.24% and +12.38%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for DraftKings. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, DraftKings is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, DraftKings currently has a Forward P/E ratio of 23.58. This represents a premium compared to its industry average Forward P/E of 18.95.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 158, placing it within the bottom 36% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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).