DraftKings (DKNG) closed at $23.14 in the latest trading session, marking a -1.11% move from the prior day. This move lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq added 0.04%.
Shares of the company have appreciated by 8.23% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 3.86%, and lagging the S&P 500's gain of 12.24%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company plans to announce its earnings on May 7, 2026. The company is forecasted to report an EPS of $0.22, showcasing a 83.33% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 17.04% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.13 per share and revenue of $6.81 billion, indicating changes of +71.21% and +12.42%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.91% lower within the past month. DraftKings presently features a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 20.71. This signifies a premium in comparison to the average Forward P/E of 17.48 for its industry.
It's also important to note that DKNG currently trades at a PEG ratio of 0.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Gaming industry currently had an average PEG ratio of 1.36 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 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.
To follow DKNG in the coming trading sessions, be sure to utilize Zacks.com.
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DraftKings Inc. (DKNG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).