DraftKings (DKNG) closed at $29.03 in the latest trading session, marking a -3.31% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.5%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.31%.
The company's stock has climbed by 19.36% in the past month, exceeding the Consumer Discretionary sector's gain of 1.82% and the S&P 500's loss of 0.23%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. 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%. Alongside, our most recent consensus estimate is anticipating revenue of $1.57 billion, indicating a 3.85% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.15 per share and revenue of $6.8 billion, which would represent changes of +74.24% and +12.38%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.83% downward. Currently, DraftKings is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, DraftKings is currently trading at a Forward P/E ratio of 26.05. This valuation marks a premium compared to its industry average Forward P/E of 18.06.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 34% echelons of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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DraftKings Inc. (DKNG): Free Stock Analysis Report
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