DraftKings (DKNG) Stock Sinks As Market Gains: What You Should Know

In the latest market close, DraftKings (DKNG) reached $39.41, with a -1.73% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.7%.Shares of the company witnessed a loss of 5.51% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 5.26% and outperforming the S&P 500's loss of 5.56%.Investors will be eagerly watching for the performance of DraftKings in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.23, signifying a 176.67% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.56 billion, up 32.44% from the year-ago period.For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.41 per share and a revenue of $6.45 billion, signifying shifts of +234.29% and +35.33%, respectively, from the last year.Investors might also notice recent changes to analyst estimates for DraftKings. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 55.41% upward. Right now, DraftKings possesses a Zacks Rank of #2 (Buy).In terms of valuation, DraftKings is presently being traded at a Forward P/E ratio of 28.49. This indicates a premium in contrast to its industry's Forward P/E of 20.56.One should further note that DKNG currently holds a PEG ratio of 0.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 2.The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 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.To follow DKNG in the coming trading sessions, be sure to utilize Zacks.com.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks