The most recent trading session ended with DraftKings (DKNG) standing at $41.11, reflecting a -0.56% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 1.46% for the day. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, lost 3.07%.
Coming into today, shares of the company had gained 9.02% in the past month. In that same time, the Consumer Discretionary sector gained 0.19%, while the S&P 500 gained 1.08%.
Analysts and investors alike will be keeping a close eye on the performance of DraftKings in its upcoming earnings disclosure. The company's earnings report is set to go public on February 13, 2025. It is anticipated that the company will report an EPS of -$0.15, marking a 50% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.43 billion, indicating a 16.36% growth compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for DraftKings. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. Currently, DraftKings is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, DraftKings is currently being traded at a Forward P/E ratio of 98.08. Its industry sports an average Forward P/E of 17.63, so one might conclude that DraftKings is trading at a premium comparatively.
Also, we should mention that DKNG has a PEG ratio of 3.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.85.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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