DraftKings (DKNG) Ascends While Market Falls: Some Facts to Note

DraftKings (DKNG) ended the recent trading session at $37.36, demonstrating a +0.3% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.42%, and the technology-centric Nasdaq decreased by 1.89%.Prior to today's trading, shares of the company had lost 12.31% over the past month. This has lagged the Consumer Discretionary sector's loss of 5.46% and the S&P 500's loss of 1.7% in that time.The upcoming earnings release of DraftKings will be of great interest to investors. It is anticipated that the company will report an EPS of -$0.05, marking a 50% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.52 billion, indicating a 23.38% increase compared to the same quarter of the previous year.Any recent changes to analyst estimates for DraftKings should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 witnessed a 0.56% decrease. As of now, DraftKings holds a Zacks Rank of #4 (Sell).Valuation is also important, so investors should note that DraftKings has a Forward P/E ratio of 89.32 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.54.It's also important to note that DKNG currently trades at a PEG ratio of 2.82. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Gaming industry stood at 2.3 at the close of the market yesterday.The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 137, placing it within the bottom 46% of over 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.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DraftKings Inc. (DKNG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks