DraftKings (DKNG) closed the most recent trading day at $35.17, moving -2.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.65%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.82%.
Shares of the company have appreciated by 3.12% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.38%, and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. In that report, analysts expect DraftKings to post earnings of $0.44 per share. This would mark year-over-year growth of 257.14%. At the same time, our most recent consensus estimate is projecting a revenue of $1.95 billion, reflecting a 40.25% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $0.84 per share and a revenue of $6.02 billion, demonstrating changes of +180% and 0%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.99% lower. DraftKings is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, DraftKings is holding a Forward P/E ratio of 23.62. This indicates a premium in contrast to its industry's Forward P/E of 17.2.
One should further note that DKNG currently holds a PEG ratio of 0.47. 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 the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.68.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 195, positioning it in the bottom 21% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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