DraftKings (DKNG) shares ended the last trading session 5% higher at $41.10. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.8% gain over the past four weeks.

DraftKings’ rally is likely driven by positive investor sentiment following the optimistic guidance from Flutter Entertainment. Since both companies operate in the online sports betting and iGaming sector, Flutter’s favorable outlook is resonating across the industry, leading to increased enthusiasm for DraftKings’ shares as investors respond to the overall market sentiment. With the total addressable market for regulated gaming projected to reach $368 billion by 2030, confidence in DraftKings’ growth potential continues to rise.

This company is expected to post quarterly loss of $0.43 per share in its upcoming report, which represents a year-over-year change of +29.5%. Revenues are expected to be $1.11 billion, up 40.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For DraftKings, the consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DKNG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

DraftKings is part of the Zacks Gaming industry. MGM Resorts (MGM), another stock in the same industry, closed the last trading session 0.5% lower at $37.18. MGM has returned -1.7% in the past month.

For MGM , the consensus EPS estimate for the upcoming report has changed +2.1% over the past month to $0.62. This represents a change of -3.1% from what the company reported a year ago. MGM currently has a Zacks Rank of #3 (Hold).

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