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DraftKings (DKNG) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, DraftKings (DKNG) closed at $58.12, marking a +1.66% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.09%.

Coming into today, shares of the company had lost 13.2% in the past month. In that same time, the Consumer Discretionary sector lost 7.19%, while the S&P 500 gained 5.05%.

Investors will be hoping for strength from DKNG as it approaches its next earnings release, which is expected to be May 7, 2021. On that day, DKNG is projected to report earnings of -$0.50 per share, which would represent a year-over-year decline of 177.78%. Our most recent consensus estimate is calling for quarterly revenue of $221.65 million, up 150.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.84 per share and revenue of $997.31 million, which would represent changes of +33.33% and +62.29%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DKNG. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant within the past month. DKNG is currently sporting a Zacks Rank of #4 (Sell).

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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