The latest trading session saw DraftKings (DKNG) ending at $39.83, denoting a +0.86% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.86%, while the tech-heavy Nasdaq lost 0.38%.
The company's stock has dropped by 0.98% in the past month, exceeding the Consumer Discretionary sector's loss of 5.64% and the S&P 500's loss of 2.2%.
The upcoming earnings release of DraftKings will be of great interest to investors. The company's upcoming EPS is projected at -$0.08, signifying a 20% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.5 billion, indicating a 22.02% upward movement from the same quarter last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.56% lower. DraftKings is currently sporting a Zacks Rank of #4 (Sell).
In the context of valuation, DraftKings is at present trading with a Forward P/E ratio of 94.69. This represents a premium compared to its industry's average Forward P/E of 17.23.
It's also important to note that DKNG currently trades at a PEG ratio of 2.99. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Gaming was holding an average PEG ratio of 2.04 at yesterday's closing price.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 61, this industry ranks in the top 25% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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