DraftKings (DKNG) Falls More Steeply Than Broader Market: What Investors Need to Know

The latest trading session saw DraftKings (DKNG) ending at $41.39, denoting a -1.33% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.76%. On the other hand, the Dow registered a loss of 0.28%, and the technology-centric Nasdaq decreased by 1.2%.Shares of the company have appreciated by 12.02% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 3.51% and the S&P 500's gain of 2.71%.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 13, 2025. In that report, analysts expect DraftKings to post earnings of -$0.17 per share. This would mark a year-over-year decline of 70%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.41 billion, indicating a 14.91% increase compared to the same quarter of the previous year.Investors should also take note of any recent adjustments to analyst estimates for DraftKings. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% higher. At present, DraftKings boasts a Zacks Rank of #3 (Hold).In the context of valuation, DraftKings is at present trading with a Forward P/E ratio of 99.53. This indicates a premium in contrast to its industry's Forward P/E of 17.81.It is also worth noting that DKNG currently has a PEG ratio of 3.14. 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 was holding an average PEG ratio of 1.8 at yesterday's closing price.The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 56, placing it within the top 23% of over 250 industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>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