In the latest trading session, DraftKings (DKNG) closed at $34.10, marking a -3.1% move from the previous day. This change lagged the S&P 500's 0.53% gain on the day. Meanwhile, the Dow experienced a rise of 0.52%, and the technology-dominated Nasdaq saw an increase of 0.52%.
Prior to today's trading, shares of the company had lost 18.73% lagged the Consumer Discretionary sector's loss of 4.62% and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. It is anticipated that the company will report an EPS of -$0.14, marking a 76.67% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.32 billion, indicating a 20.44% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.24 per share and revenue of $6.31 billion. These totals would mark changes of +218.1% and +32.34%, respectively, from last year.
Any recent changes to analyst estimates for DraftKings should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate has moved 4.83% lower within the past month. DraftKings currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 28.38. This valuation marks a premium compared to its industry average Forward P/E of 21.32.
Also, we should mention that DKNG has a PEG ratio of 0.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DKNG's industry had an average PEG ratio of 1.8 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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