DraftKings (DKNG – Free Report) ended the recent trading session at $37.92, demonstrating a -1.4% swing from the preceding day’s closing price. The stock’s change was less than the S&P 500’s daily loss of 1.11%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.49%.
Prior to today’s trading, shares of the company had lost 10.62% over the past month. This has lagged the Consumer Discretionary sector’s loss of 0.11% and the S&P 500’s gain of 0.4% in that time.
Analysts and investors alike will be keeping a close eye on the performance of DraftKings in its upcoming earnings disclosure. The company’s upcoming EPS is projected at -$0.03, signifying a 70% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 24.7% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.79 per share and a revenue of $4.91 billion, indicating changes of +54.34% and +33.95%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DraftKings. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% lower. Right now, DraftKings possesses a Zacks Rank of #4 (Sell).
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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