DKNG Stock Analysis: Buy, Sell, or Hold?
DKNG - DraftKings Inc. Class A Common Stock
$25.22
1.30 (5.43%)
▲
5d:
+8.15%
30d:
+5.35%
90d:
-1.18%
BUY
MODERATE Confidence
Analysis Updated: May 7, 2026 12:00 AM ET
Earnings: May 07, 2026
0d
Smart Money Distribution
None View Scanner →
Strength: 7.7/10
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2 traders called DKNG this week
100% bullish • 0 bearish
100% bullish • 0 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DKNG shows positive signals but monitor for confirmation. Market pricing in 3.3% decline. Moderate conviction.
💡 BUY OPPORTUNITY: DKNG shows positive signals but monitor for confirmation. Market pricing in 3.3% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$54.43
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$33.80
25.4% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 15.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DKNG is currently trading at $25.22, which is considered extended relative to its 30-day fair value range of $22.20 to $23.86. The stock's valuation (Forward PE: 14.3) is in line with its historical norms (15.9). Remarkably, the market is currently pricing in an annual earnings decline of 3.3% over the next few years. This pessimistic expectation contrasts with the company's recent 184.6% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, DKNG is in a strong uptrend. The price is approaching resistance at $25.05. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 5.4% recently.
Market Sentiment: DKNG has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $34.86 (+38.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DKNG is in a strong uptrend. The price is approaching resistance at $25.05. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 5.4% recently.
Market Sentiment: DKNG has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $34.86 (+38.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$22.20 -
$23.86
Company Quality Score
58/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
61.9%
All Signals
- BEARISH: Price extended above range (+5.7% above its trading range)
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+5.4%)
- BULLISH: Trading 38.2% below Wall St target ($34.86)
Trading Range Analysis
30-Day Trading Range
$22.20 -
$23.86
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$21.66
Resistance Level
$25.06
Current Trend
Strong Uptrend
Technical data as of
May 7, 2026
Fundamental Context
Forward P/E (Next Year Est.)
14.35
Wall Street Target
$34.86
(+38.2%)
Revenue Growth (YoY)
42.8%
Earnings Growth (YoY)
184.6%
Profit Margin
0.1%
Valuation Discount vs History
-3.3% cheaper
PE vs Historical
14.4 vs 15.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.3%
(market-implied from PE analysis)
1-Year Target
$24.39
(-3%)
2-Year Target
$23.58
(-7%)
3-Year Target
$22.80
(-10%)
3-Yr Target (if PE normalizes)
(PE: 14→16)
$25.27
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.9, Growth: 63.1%)
$130.17
(+416%)
Base:
(SPY PE: 14.3, Growth: 63.1%)
$85.12
(+238%)
Bear:
(PE: 12.2, Growth: 63.1%)
$72.35
(+187%)
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 14.3 to 15.9
Stabilization Target:
$27.95
(+10.8%)
PE Expansion Potential:
+10.8%
Share & Embed Analysis
Last updated: May 08, 2026 7:10 AM ET
Data refreshes hourly during market hours. Next update: 8:10 AM
Data refreshes hourly during market hours. Next update: 8:10 AM
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Technical Signals Check
Is DKNG showing a specific setup today?
Insider Activity (6 Months)
3
Buys
7
Sells
Net
INSIDERS SELLING
Recent Transactions
Jocelyn Moore
SELL
2150 shares
2026-03-13
Paul Liberman
SELL
484417 shares
2026-03-11
Erik Bradbury
SELL
2883 shares
2026-03-03
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