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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.