DraftKings (DKNG) closed the latest trading day at $34.22, indicating a -1.47% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.81%. Elsewhere, the Dow saw an upswing of 1.56%, while the tech-heavy Nasdaq appreciated by 2.06%.

Shares of the company witnessed a loss of 6.11% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 7.73% and the S&P 500's loss of 6.14%.

Analysts and investors alike will be keeping a close eye on the performance of DraftKings in its upcoming earnings disclosure. The company is expected to report EPS of $0.23, up 176.67% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.56 billion, indicating a 32.54% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.31 per share and revenue of $6.45 billion, which would represent changes of +224.76% and +35.19%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for DraftKings. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 17.56% lower. DraftKings is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that DraftKings has a Forward P/E ratio of 26.51 right now. This represents a premium compared to its industry's average Forward P/E of 15.4.

It's also important to note that DKNG currently trades at a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Gaming industry currently had an average PEG ratio of 1.15 as of yesterday's close.

The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 40% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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DraftKings Inc. (DKNG) : Free Stock Analysis Report

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

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