DraftKings (DKNG) ended the recent trading session at $19.15, demonstrating a -3.04% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.66%, while the tech-heavy Nasdaq lost 0.22%.
Shares of the company have depreciated by 17.26% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 2.69%, and the S&P 500's gain of 1.4%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.9 per share and a revenue of $6.72 billion, indicating changes of +36.36% and +11%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 19.05% decrease. Currently, DraftKings is carrying a Zacks Rank of #4 (Sell).
Digging into valuation, DraftKings currently has a Forward P/E ratio of 21.94. This represents a premium compared to its industry average Forward P/E of 15.68.
Investors should also note that DKNG has a PEG ratio of 0.88 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Gaming industry had an average PEG ratio of 1.05.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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DraftKings Inc. (DKNG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).