Latest news with #DKNG
Yahoo
5 days ago
- Business
- Yahoo
DraftKings (DKNG) Is Considered a Good Investment by Brokers: Is That True?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about DraftKings (DKNG). DraftKings currently has an average brokerage recommendation (ABR) of 1.27, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 31 brokerage firms. An ABR of 1.27 approximates between Strong Buy and Buy. Of the 31 recommendations that derive the current ABR, 25 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 80.7% and 9.7% of all recommendations. Check price target & stock forecast for DraftKings here>>>While the ABR calls for buying DraftKings, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for DraftKings, the Zacks Consensus Estimate for the current year has declined 23.7% over the past month to $1.40. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for DraftKings. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for DraftKings with a grain of salt. 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 Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
DraftKings Stock Price Levels to Watch After Illinois Sports Betting Tax Approved
DraftKings shares rebounded on Tuesday from a steep decline the previous session that followed news Illinois lawmakers had passed a budget that includes a new sports betting tax. The stock broke down below the bottom trendline of a flag pattern in Monday's trading session, potentially setting the stage for further selling. Investors should watch crucial support levels on DraftKings' chart around $29 and $23, while also monitoring vital resistance levels near $39 and $ (DKNG) shares rebounded on Tuesday from a steep decline the previous session that followed news Illinois lawmakers had passed a budget that includes a new sports betting tax. The budget includes a new provision taxing every sports bet made in Illinois by 25 cents for the first 20 million wagers a company takes and 50 cents for each bet past that threshold. Citi analysts on Monday estimated that DraftKings would have been subject to roughly $68 million in additional taxes if the new tax had been in effect over the last 12 months. Shares of the company are down 8% since the start of the year, lagging the performance of the benchmark S&P 500 index, amid increasing competition among sports betting companies. The stock rose 1.8% to $34.32 on Tuesday, after dropping 6% the day before. Below, we take a closer look at DraftKings' weekly chart and apply technical analysis to point out crucial price levels that investors will likely be watching. After finding buying interest around the 200-day moving average (MA), DraftKings shares rallied within a bearish flag before encountering resistance near the 50-day MA. Since that time, the stock has continued to track lower, with the price breaking down below the flag's bottom trendline in Monday's trading session, potentially setting the stage for further selling. However, it's worth noting that the stock's recent weakness has occurred on declining volume, indicating that retail investors rather than larger market participants have driven the price action. Let's identify several crucial support and resistance levels on DraftKings' chart worth watching. The first lower level to watch sits around $29, an area on the chart where the shares may attract support near last year's prominent August trough. A close below this level opens the door for a more significant drop to lower support around $23. Investors may seek buying opportunities in this region near the February 2022 countertrend peak and the lower range of a brief consolidation period that formed on the chart in May 2023. Interestingly, this level also sits in the same neighborhood as a projected bars pattern target that takes the sharp trend lower that preceded the flag and repositions it from the pattern's top trendline, providing insight into how a potential continuation move lower may play out. During recovery efforts in the stock, investors should initially monitor the $39 level. The shares may encounter resistance in this area near last month's high and the 50-day MA, which also closely aligns with several peaks and troughs on the chart stretching back to November last year. Finally, buying above this level could see DraftKings shares climb toward $47. Investors who have bought at lower prices may seek exit points in this area near a series of corresponding prices situated just below last year's March peak. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
02-06-2025
- Business
- Yahoo
How much the Illinois sports betting tax could cost operators
Shares of sportsbook operators DraftKings (DKNG), FanDuel parent company Flutter Entertainment (FLUT), and MGM Resorts (MGM) are hard pressed on Monday after Illinois lawmakers passed a tax on sports bets. Citizens Senior Equity Research Analyst Jordan Bender comes on Asking for a Trend to discuss what this new tax could cost sports betting platforms in the long run. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Sign in to access your portfolio
Yahoo
02-06-2025
- Business
- Yahoo
Why DraftKings (DKNG) Shares Are Getting Obliterated Today
Shares of fantasy sports and betting company DraftKings (NASDAQ:DKNG) fell 7% in the morning session after the state of Illinois announced new legislation that introduces additional fees for online sports betting operators. The new fee structure is expected to significantly increase the tax rate for major players like DraftKings in Illinois, potentially reducing their profitability. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy DraftKings? Access our full analysis report here, it's free. DraftKings's shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 4 months ago when the stock gained 14.3% on the news that the company reported strong fourth-quarter results, which blew past analysts' EPS and EBITDA expectations. Looking ahead, it slightly lifted its full-year revenue guidance, beating analysts estimates', while EBITDA outlook for the same period was roughly in line. On the other hand, revenue missed expectations by a whisker as average revenue per user dropped 16%, primarily due to lower spending from Jackpocket users and a lower sportsbook hold rate. This dynamic played into earnings, as GAAP operating margin fell. Still, this was a decent quarter with key positives. DraftKings is down 7.1% since the beginning of the year, and at $33.72 per share, it is trading 37% below its 52-week high of $53.49 from February 2025. Investors who bought $1,000 worth of DraftKings's shares 5 years ago would now be looking at an investment worth $817.28. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
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Was Jim Cramer Right About DraftKings Inc. (DKNG)?
We recently published a list of In this article, we are going to take a look at where DraftKings Inc. (NASDAQ:DKNG) stands against other stocks that Jim Cramer discusses. Back in 2024, on May 16, a caller asked about sports betting stocks ahead of football season at the time, specifically DraftKings Inc. (NASDAQ:DKNG). Cramer said: 'Look, I saw Flutter's numbers — that means that DraftKings is the one to buy. It's terrific.' DraftKings went the wrong way after Cramer's call, dropping 17.95% even as sports betting continued growing. DraftKings Inc. (NASDAQ:DKNG) is slipping despite strong sports betting trends, as rising costs and competition pressure margins. A woman at a betting table paying out customers who won their sports bets. During a recent Mad Money episode which aired on May 15, Cramer admitted he was too bullish on the stock, but he still sees a potential bullish scenario. Here's what he said: 'I've gotta tell you, you could say I've been too bullish on it. I just really believe that we were, you know, we're still too far away from football season, but I do genuinely believe that what has to happen is some of these states that don't have gambling have to get gambling, and that's what I think it's really about. I thought it was about the handle. I thought it was about the hold. I'm beginning to think it's about these states that don't allow gambling yet that have to.' Overall, DKNG ranks 9th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of DKNG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DKNG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
