In the latest trading session, DraftKings (DKNG) closed at $16.87, marking a -0.88% move from the previous day. This change was narrower than the S&P 500’s daily loss of 1.04%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 5.88%.
Prior to today’s trading, shares of the company had gained 48.26% over the past month. This has outpaced the Consumer Discretionary sector’s gain of 18.49% and the S&P 500’s gain of 8.97% in that time.
DraftKings will be looking to display strength as it nears its next earnings release, which is expected to be February 16, 2023. The company is expected to report EPS of -$0.63, up 21.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $793.18 million, up 67.57% from the prior-year quarter.
Any recent changes to analyst estimates for DraftKings should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. DraftKings is currently a Zacks Rank #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% 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.
To follow DKNG in the coming trading sessions, be sure to utilize Zacks.com.
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