DraftKings (DKNG) Laps the Stock Market: Here's Why

DraftKings (DKNG) closed the most recent trading day at $42.80, moving +1.09% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.61%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.95%. Prior to today's trading, shares of the company had gained 12.73% outpaced the Consumer Discretionary sector's gain of 5.12% and the S&P 500's gain of 3.85%.The investment community will be closely monitoring the performance of DraftKings in its forthcoming earnings report. The company is expected to report EPS of $0.41, up 241.67% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.39 billion, indicating a 26.21% upward movement from the same quarter last year. For the full year, the Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $6.26 billion, which would represent changes of +227.62% and +31.23%, respectively, from the prior year. Any recent changes to analyst estimates for DraftKings should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 9.26% decrease. DraftKings presently features a Zacks Rank of #3 (Hold). Looking at its valuation, DraftKings is holding a Forward P/E ratio of 31.72. This denotes a premium relative to the industry average Forward P/E of 22.96. It's also important to note that DKNG currently trades at a PEG ratio of 0.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.72. The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. Should You Invest in DraftKings Inc. (DKNG)?Before you invest in DraftKings Inc. (DKNG), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DraftKings Inc. (DKNG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks