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DraftKings (DKNG) ended the recent trading session at $37.25, demonstrating a -0.53% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.55%. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq increased by 1.24%.
The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be -$0.03, reflecting a 70% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.53 billion, up 24.7% from the prior-year quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. At present, DraftKings boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 89.56. This valuation marks a premium compared to its industry's average Forward P/E of 18.33.
It is also worth noting that DKNG currently has a PEG ratio of 2.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Gaming stocks are, on average, holding a PEG ratio of 2.34 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 136, putting it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.