In This Article:
In the latest market close, DraftKings (DKNG) reached $39.29, with a -0.98% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq gained 1.51%.
Coming into today, shares of the company had gained 0.71% in the past month. In that same time, the Consumer Discretionary sector lost 4.58%, while the S&P 500 lost 2.14%.
The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. The company is forecasted to report an EPS of -$0.15, showcasing a 50% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, up 16.36% from the year-ago period.
Investors should also note any recent changes to analyst estimates for DraftKings. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. The Zacks Consensus EPS estimate has moved 0.5% higher within the past month. DraftKings is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that DraftKings has a Forward P/E ratio of 94.15 right now. This represents a premium compared to its industry's average Forward P/E of 17.06.
We can also see that DKNG currently has a PEG ratio of 2.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Gaming stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.