DraftKings (DKNG) ended the recent trading session at $36.24, demonstrating a +1.63% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.64% for the day. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 0.69%.
The company's shares have seen an increase of 4.88% over the last month, surpassing the Consumer Discretionary sector's loss of 0.05% and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. The company is expected to report EPS of $0.38, up 235.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.94 billion, up 38.95% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.77 per share and a revenue of $6 billion, demonstrating changes of +173.33% and 0%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for DraftKings. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DraftKings presently features a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, DraftKings is holding a Forward P/E ratio of 23.11. Its industry sports an average Forward P/E of 16.9, so one might conclude that DraftKings is trading at a premium comparatively.
Investors should also note that DKNG has a PEG ratio of 0.46 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.8.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 34% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DraftKings Inc. (DKNG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
