In the latest close session, DraftKings (DKNG) was down 4.12% at $43.98. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the company had gained 5.04% lagged the Consumer Discretionary sector's gain of 5.91% and outpaced the S&P 500's gain of 3.44%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.01, reflecting a 101.67% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.37 billion, up 25.4% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.33 per share and a revenue of $6.36 billion, indicating changes of +226.67% and +33.4%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DraftKings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, DraftKings possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 34.49. This represents a premium compared to its industry average Forward P/E of 23.73.
We can additionally observe that DKNG currently boasts a PEG ratio of 0.61. 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. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.63.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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DraftKings Inc. (DKNG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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