The latest trading session saw DraftKings (DKNG) ending at $38.44, denoting a -0.26% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.33%.

The company's shares have seen a decrease of 24.1% over the last month, not keeping up with the Consumer Discretionary sector's loss of 8.76% and the S&P 500's loss of 7.48%.

Analysts and investors alike will be keeping a close eye on the performance of DraftKings in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.23, marking a 176.67% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.56 billion, showing a 32.44% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.41 per share and a revenue of $6.45 billion, demonstrating changes of +234.29% and +35.33%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for DraftKings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 16.44% higher within the past month. Right now, DraftKings possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, DraftKings is currently exchanging hands at a Forward P/E ratio of 27.38. This valuation marks a premium compared to its industry's average Forward P/E of 21.27.

We can additionally observe that DKNG currently boasts a PEG ratio of 0.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Gaming industry currently had an average PEG ratio of 2.32 as of yesterday's close.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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

DraftKings Inc. (DKNG) : Free Stock Analysis Report

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

Zacks Investment Research