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DraftKings Inc. (DKNG) Stock Analysis

Recovery setup

SellVALUE-TRAP 3/5High Confidence

Consumer Cyclical · Gambling

Sell if holding. Momentum 3.9/10 is below the 5.0 floor at $25.20 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6); Sector modifier (Consumer Cyclical): -1.5.

DraftKings is a digital sports entertainment and gaming company offering online sports betting, iGaming, daily fantasy sports, digital lottery courier, and prediction markets in the U.S. In fiscal 2025 it generated $6.05 billion in revenue with 4.0 million average monthly unique... Read more

$25.20+27.1% A.UpsideScore 5.1/10#6 of 6 Gambling
QualityF-score6 / 9FCF yield4.76%
Stop $23.44Target $32.02(analyst − 8%)A.R:R 1.9:1
Analyst target$34.80+38.1%34 analysts
$32.02our TP
$25.20price
$34.80mean
$74

Sell if holding. Momentum 3.9/10 is below the 5.0 floor at $25.20 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6); Sector modifier (Consumer Cyclical): -1.5. Chart setup: Death cross but MACD improving, RSI 64. Score 5.1/10, high confidence.

Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity 77d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.

Val7.2Qual4.6Grw6.7Mom3.9Sent7.3Ins3.4Peer3.1Tech2.2Risk4.05.1OVERALL

Recent Developments — DraftKings Inc.

Latest news

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
Attractive valuation
Analyst upside: 27%
Risks
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6)
Sector modifier (Consumer Cyclical): -1.5
Leverage penalty (D/E 3.2): -1.5

Key Metrics

P/E (TTM)283.8
P/E (Fwd)14.7
Mkt Cap$12.7B
EV/EBITDA41.6
Profit Mgn0.9%
ROE7.9%
Rev Growth16.8%
Beta1.67
DividendNone
Rating analysts44

Quality Signals

Piotroski F6/9MoatNarrow

Options Flow

P/C1.26bearish
IV59%elevated
Max Pain$12-52.4% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

52w Position
0.3
Bollinger
2.7
Support Resistance
3.6

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
1.7
Value Rank
2.5
Growth Rank
3.3

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.0
Obv
1.0
Rsi
3.6
Ma Position
6.0
Macd
9.1
Volume distribution (falling OBV)Below 200-MA, MA slope -8.4%/30d — confirmed downtrend
GatesMomentum 3.9<4.5Death cross (50MA < 200MA)A.R:R 1.9 ≥ 1.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY 77d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
64 · Neutral
↑ 20D MA↑ 50D MA↓ 200D MADEATH CROSSSupport $21.66Resistance $27.21

Price Targets

$23
$32
A.Upside+27.1%
A.R:R1.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 3.9/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-08-05 (77d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DKNG stock a buy right now?

Sell if holding. Momentum 3.9/10 is below the 5.0 floor at $25.20 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6); Sector modifier (Consumer Cyclical): -1.5. Chart setup: Death cross but MACD improving, RSI 64. Prior stop was $23.44. Score 5.1/10, high confidence.

What is the DKNG stock price target?

Take-profit target: $32.02 (+27.1% upside). Prior stop was $23.44. Stop-loss: $23.44.

What are the risks of investing in DKNG?

V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6); Sector modifier (Consumer Cyclical): -1.5; Leverage penalty (D/E 3.2): -1.5.

Is DKNG overvalued or undervalued?

DraftKings Inc. trades at a P/E of 283.8 (forward 14.7). TrendMatrix value score: 7.2/10. Verdict: Sell.

What do analysts say about DKNG?

44 analysts cover DKNG with a consensus score of 4.0/5. Average price target: $35.

What does DraftKings Inc. do?DraftKings is a digital sports entertainment and gaming company offering online sports betting, iGaming, daily fantasy...

DraftKings is a digital sports entertainment and gaming company offering online sports betting, iGaming, daily fantasy sports, digital lottery courier, and prediction markets in the U.S. In fiscal 2025 it generated $6.05 billion in revenue with 4.0 million average monthly unique payers; Sportsbook and iGaming together account for 93% of revenues.

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