DraftKings (DKNG) closed at $34.05 in the latest trading session, marking a +1.73% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.67%. Meanwhile, the Dow gained 1.07%, and the Nasdaq, a tech-heavy index, added 2.5%.
Prior to today's trading, shares of the company had lost 14.07% over the past month. This has lagged the Consumer Discretionary sector's loss of 6.33% and the S&P 500's loss of 6.57% in that time.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 8, 2025. The company's upcoming EPS is projected at $0.11, signifying a 136.67% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.48 billion, up 25.78% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.23 per share and a revenue of $6.41 billion, demonstrating changes of +217.14% and +34.44%, respectively, from the preceding year.
Investors should also note any 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 30.79% lower. Currently, DraftKings is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, DraftKings is presently being traded at a Forward P/E ratio of 27.28. This indicates a premium in contrast to its industry's Forward P/E of 15.67.
It's also important to note that DKNG currently trades at a PEG ratio of 0.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DKNG's industry had an average PEG ratio of 1.2 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 42% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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