DraftKings (DKNG) closed the most recent trading day at $49, moving +1.96% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.4%.
Prior to today's trading, shares of the company had gained 7.69% over the past month. This has outpaced the Consumer Discretionary sector's loss of 0.3% and the S&P 500's gain of 1.07% in that time.
DKNG will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.61, down 177.27% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $240.84 million, up 239.55% from the year-ago period.
DKNG's full-year Zacks Consensus Estimates are calling for earnings of -$2.92 per share and revenue of $1.13 billion. These results would represent year-over-year changes of -5.8% and +83.6%, respectively.
Investors should also note any recent changes to analyst estimates for DKNG. 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 0.2% lower within the past month. DKNG is holding a Zacks Rank of #4 (Sell) right now.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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