DraftKings (DKNG) closed the most recent trading day at $33.61, moving -0.03% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.13%. Elsewhere, the Dow lost 1.33%, while the tech-heavy Nasdaq lost 0.13%.
The company's shares have seen a decrease of 12.77% over the last month, not keeping up with the Consumer Discretionary sector's loss of 7.24% and the S&P 500's loss of 6.3%.
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 $0.11, marking a 136.67% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.5 billion, indicating a 27.24% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.23 per share and revenue of $6.43 billion, which would represent changes of +217.14% and +34.92%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DraftKings. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 30.79% downward. As of now, DraftKings holds a Zacks Rank of #3 (Hold).
In the context of valuation, DraftKings is at present trading with a Forward P/E ratio of 27.41. This expresses a premium compared to the average Forward P/E of 15.32 of its industry.
Also, we should mention that DKNG has a PEG ratio of 0.5. 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 industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 142, finds itself in the bottom 43% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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