Why DraftKings (DKNG) Dipped More Than Broader Market Today

The latest trading session saw DraftKings (DKNG) ending at $37.04, denoting a -1.7% adjustment from its last day's close. This change lagged the S&P 500's 0.33% loss on the day. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.53%.The company's stock has dropped by 13.1% in the past month, falling short of the Consumer Discretionary sector's loss of 4.73% and the S&P 500's loss of 4.03%.Analysts and investors alike will be keeping a close eye on the performance of DraftKings in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.23, showcasing a 176.67% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.55 billion, indicating a 32.03% upward movement from the same quarter last year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.41 per share and a revenue of $6.45 billion, indicating changes of +234.29% and +35.2%, respectively, from the former year.Investors might also notice recent changes to analyst estimates for DraftKings. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 13.82% decrease. DraftKings currently has a Zacks Rank of #3 (Hold).Investors should also note DraftKings's current valuation metrics, including its Forward P/E ratio of 26.77. This denotes a premium relative to the industry's average Forward P/E of 20.69.One should further note that DKNG currently holds a PEG ratio of 0.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DKNG's industry had an average PEG ratio of 2.11 as of yesterday's close.The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 46% of all 250+ industries.The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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.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 256 positions with double- and triple-digit gains in 2024 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks