In the latest trading session, DraftKings (DKNG) closed at $27.51, marking a -8.12% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.94%.
Coming into today, shares of the company had lost 13.12% in the past month. In that same time, the Consumer Discretionary sector lost 3.62%, while the S&P 500 gained 0.89%.
The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. The company is scheduled to release its earnings on February 12, 2026. The company is predicted to post an EPS of $0.5, indicating a 278.57% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.97 billion, up 41.32% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.9 per share and a revenue of $6.03 billion, demonstrating changes of +185.71% and 0%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for DraftKings. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.14% lower. DraftKings is currently a Zacks Rank #4 (Sell).
In terms of valuation, DraftKings is presently being traded at a Forward P/E ratio of 17.69. This signifies a premium in comparison to the average Forward P/E of 16.54 for its industry.
Also, we should mention that DKNG has a PEG ratio of 0.35. 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 had an average PEG ratio of 1.49 as trading concluded yesterday.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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