DraftKings Inc. DKNG stock has gained 17.6% over the past six months, outpacing the gaming industry’s 11% growth and the S&P 500’s 8.7% rise. The company continues to thrive, fueled by a surge in new online Sportsbook and iGaming customers, along with an expanding portfolio of innovative product offerings.

As of Tuesday, the stock closed at $41.30, below its 52-week high of $53.61 but well above its 52-week low of $28.69. In the past six months, the stock has outperformed other industry players like Wynn Resorts, Limited WYNN, Caesars Entertainment, Inc. CZR and MGM Resorts International MGM.

DKNG Stock Price Performance

Image Source: Zacks Investment Research

DKNG Benefits From Customer Acquisition

DraftKings is benefiting from customer acquisition. The company expanded its customer base significantly in fiscal 2024, adding 3.5 million users while maintaining record-low acquisition costs. The total customer count jumped 42% year over year to 10.1 million. Notably, the company demonstrated strong operating leverage, with revenues growing 30% but adjusted operating expenses rising a modest 5% after accounting for acquisition-related costs.

DraftKings remains confident in its growth trajectory, expecting strong revenue momentum while maintaining disciplined expense management and leveraging advanced technologies for scalability. The company sees multiple catalysts for future expansion, including a rising structural Sportsbook hold percentage and the ongoing legalization of online gaming in the United States, which it views as a matter of timing rather than possibility.

Positioned at the center of the rapidly expanding real-money online gaming industry, DraftKings aims to capture a substantial market share, with potential international expansion beyond the United States and Canada in the long term. In 2025, the company’s key focus is on enhancing its dominance in live betting, with recent acquisitions of Simplebet, SportsIQ Analytics and Mustard Golf set to drive innovation and elevate the real-time wagering experience.

2025 View Looks Promising for DraftKings

DKNG provided an optimistic outlook for 2025. The company raised its revenue guidance to $6.3-$6.6 billion, indicating 32-38% year-over-year growth. Adjusted EBITDA is expected between $900 million and $1 billion.

The company’s products are well-positioned as it continues to stand out by investing in new features and functionality for Sportsbook and iGaming. In Sportsbook, DKNG recently introduced in-house player prop bets for major leagues like the NFL, NBA, MLB and NHL, along with college football, basketball and tennis. It also expanded its progressive parlays to include spread and total wagers.

DKNG’s Bottom Line Improves

DraftKings’ earnings trajectory looks highly promising, with projections pointing to substantial growth. The company is expected to deliver earnings of $1.41 per share in 2025, suggesting a staggering 234.3% year-over-year upsurge. The momentum is set to continue into 2026, with earnings anticipated to climb to $2.14 per share, implying a solid 52% annual increase.

This robust earnings expansion underscores DraftKings’ strong upside potential and reinforces confidence in its long-term growth story.

Image Source: Zacks Investment Research

DraftKings Trades at a Premium

The company is currently valued at a premium compared with the industry on a forward 12-month P/S basis. DKNG’s forward 12-month price-to-sales ratio stands at 3.05, higher than the industry’s.

DKNG P/S Ratio  (Forward 12 Months)

Image Source: Zacks Investment Research

Right Time to Add DKNG Stock to Portfolio?

DraftKings continues to showcase strong growth potential, driven by a rapidly expanding customer base, disciplined expense management, and strategic investments in live betting and iGaming. The company remains at the forefront of the booming online gaming industry, capitalizing on favorable regulatory trends and enhancing its product offerings with innovative features like in-house player prop bets and progressive parlays.

With a solid revenue outlook, improving profitability, and a clear focus on operational efficiency, DraftKings is well-positioned for long-term success. Despite trading at a premium, its strong market position, expanding opportunities and sustained momentum make it an attractive buy for investors looking to capitalize on the growth of digital sports betting and iGaming. DKNG currently has a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report

MGM Resorts International (MGM) : Free Stock Analysis Report

Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report

DraftKings Inc. (DKNG) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research