DraftKings (DKNG) closed at $33.00 in the latest trading session, marking a -4.9% move from the prior day. This move lagged the S&P 500's daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 1.01%, and the technology-dominated Nasdaq saw an increase of 1.15%.
Heading into today, shares of the company had lost 19.15% over the past month, lagging the Consumer Discretionary sector's loss of 1.93% and the S&P 500's gain of 1.27%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 6, 2025. The company is expected to report EPS of -$0.14, up 76.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.28 billion, up 17.03% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.24 per share and a revenue of $6.25 billion, demonstrating changes of +218.1% and +31%, respectively, from the preceding 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.83% downward. As of now, DraftKings holds a Zacks Rank of #4 (Sell).
Looking at valuation, DraftKings is presently trading at a Forward P/E ratio of 27.98. This indicates a premium in contrast to its industry's Forward P/E of 22.54.
We can also see that DKNG currently has a PEG ratio of 0.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Gaming stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 30% 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.
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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