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

In the latest trading session, DraftKings (DKNG) closed at $57.98, marking a +0.87% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.36%.

Heading into today, shares of the company had lost 16.66% over the past month, lagging the Consumer Discretionary sector's loss of 8.01% and the S&P 500's gain of 5.21% in that time.

DKNG will be looking to display strength as it nears 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.84 per share and revenue of $997.31 million. These totals would mark changes of +33.33% and +62.29%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.36% higher. DKNG is holding a Zacks Rank of #4 (Sell) right now.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 13% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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