- DraftKings Inc. (NASDAQ:DKNG) has characteristics which have been historically associated with poor future stock performance. DKNG has negative EPS revisions and is overpriced when compared to other Consumer Discretionary stocks, to the point that it gets a Sell rating from our Quant rating system. Stocks rated Sell or worse by our Quant rating system have massively underperformed the S&P 500, as this article will describe.
- The company has EV / EBITDA (FWD) of 35.3 while the Consumer Discretionary sector median is 10.68.
- Due to these factors our quant model has rated DraftKings Inc. as Sell and the company has an overall rank of 394 out of 2119 in the Consumer Discretionary sector. Compared to the S&P 500, stocks rated Sell or worse were down 20% on average per year over the last 10 years.
- If you are looking for alternatives to DraftKings Inc. (NASDAQ:DKNG) see our top rated Consumer Discretionary sector stocks by quant rating. Our top rated stocks have beaten the S&P 500 by 1300% over the last 10 years.
- The Sell warnings are based on our Quant Ratings, a systematic quantitative model which generates Seeking Alpha’s Sell ratings. For information about Quant Ratings, backtesting and its limitations, please read more here.
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