DraftKings (DKNG) closed the most recent trading day at $32.62, moving -8.01% from the previous trading session. This change lagged the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
The stock of company has risen by 3.71% in the past month, leading the Consumer Discretionary sector's loss of 1.49% and the S&P 500's gain of 1.99%.
Market participants will be closely following the financial results of DraftKings in its upcoming release. The company is forecasted to report an EPS of $0.45, showcasing a 260.71% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.95 billion, indicating a 40.25% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.85 per share and revenue of $6.02 billion. These totals would mark changes of +180.95% and 0%, respectively, from last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, DraftKings is holding a Forward P/E ratio of 23.28. Its industry sports an average Forward P/E of 17.39, 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 similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Gaming industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 19% 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.
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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