Yahoo Finance Here's Why DraftKings (DKNG) Fell More Than Broader Market
DraftKings (DKNG) closed at $43 in the latest trading session, marking a -0.58% move from the prior day. This change lagged the S&P 500's 0.25% loss on the day. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq lost 0.79%.
The the stock of company has risen by 3.22% in the past month, leading the Consumer Discretionary sector's gain of 0.82% and undershooting the S&P 500's gain of 3.59%.
Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.02, marking a 111.76% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.11 billion, showing a 27.43% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.21 per share and revenue of $4.96 billion. These totals would mark changes of +87.86% and +35.42%, respectively, from last year.
Any recent changes to analyst estimates for DraftKings should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 witnessed a 9.47% decrease. DraftKings is currently a Zacks Rank #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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DraftKings Inc. (DKNG) : Free Stock Analysis Report
