DraftKings (DKNG) closed at $43.36 in the latest trading session, marking a -1% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq appreciated by 0.26%.
The company's stock has climbed by 14.9% in the past month, exceeding the Consumer Discretionary sector's gain of 5.77% and the S&P 500's gain of 4.51%.
Analysts and investors alike will be keeping a close eye on the performance of DraftKings in its upcoming earnings disclosure. On that day, DraftKings is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 241.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.4 billion, indicating a 26.83% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.33 per share and a revenue of $6.27 billion, signifying shifts of +226.67% and +31.43%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for DraftKings. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 10.37% lower. DraftKings currently has a Zacks Rank of #3 (Hold).
Looking at valuation, DraftKings is presently trading at a Forward P/E ratio of 32.99. This indicates a premium in contrast to its industry's Forward P/E of 24.12.
It is also worth noting that DKNG currently has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Gaming was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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