DKNG Stock Analysis: Buy, Sell, or Hold?
DKNG - DraftKings Inc. Class A Common Stock
$25.00
-0.15 (-0.60%)
▼
5d:
-2.04%
30d:
+5.31%
90d:
+14.89%
BUY
MODERATE Confidence
Analysis Updated: May 15, 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 3.5% decline. Moderate conviction.
💡 BUY OPPORTUNITY: DKNG shows positive signals but monitor for confirmation. Market pricing in 3.5% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$54.20
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$33.65
25.7% 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 15.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DKNG is currently trading at $25.00, which is considered extended relative to its 30-day fair value range of $22.61 to $24.51. From a valuation perspective, the stock is trading at a discount (Forward PE: 14.2) compared to its historical average (15.8). Remarkably, the market is currently pricing in an annual earnings decline of 3.5% 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. Immediate support is located at $22.85, while resistance sits at $27.21.
Market Sentiment: DKNG has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $35.28 (+41.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DKNG is in a strong uptrend. Immediate support is located at $22.85, while resistance sits at $27.21.
Market Sentiment: DKNG has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $35.28 (+41.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$22.61 -
$24.51
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
61.9%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 41.1% below Wall St target ($35.28)
Trading Range Analysis
30-Day Trading Range
$22.61 -
$24.51
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$22.85
Resistance Level
$27.21
Current Trend
Strong Uptrend
Technical data as of
May 15, 2026
Fundamental Context
Forward P/E (Next Year Est.)
14.19
Wall Street Target
$35.28
(+41.1%)
Revenue Growth (YoY)
16.8%
Earnings Growth (YoY)
184.6%
Profit Margin
0.9%
Valuation Discount vs History
-3.5% cheaper
PE vs Historical
14.2 vs 15.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.5%
(market-implied from PE analysis)
1-Year Target
$24.12
(-4%)
2-Year Target
$23.28
(-7%)
3-Year Target
$22.47
(-10%)
3-Yr Target (if PE normalizes)
(PE: 14→16)
$25.01
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.1, Growth: 63.7%)
$131.20
(+425%)
Base:
(SPY PE: 14.2, Growth: 63.7%)
$84.38
(+238%)
Bear:
(PE: 12.1, Growth: 63.7%)
$71.72
(+187%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (23x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Forward PE: 23.09 | Forward EPS (Implied): $1.08
Bull Case
$30.19
(+21%)
Analyst growth 15.0%, PE expands to 24.3
Base Case
$25.00
(0%)
Market implied 0.0%, PE stable at 23.1
Bear Case
$19.12
(-24%)
Severe decline -15.0%, PE contracts to 20.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 14.2 to 15.8
Stabilization Target:
$27.83
(+11.3%)
PE Expansion Potential:
+11.3%
Share & Embed Analysis
Last updated: May 18, 2026 7:54 AM ET
Data refreshes hourly during market hours. Next update: 8:53 AM
Data refreshes hourly during market hours. Next update: 8:53 AM
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Technical Signals Check
Is DKNG showing a specific setup today?
Insider Activity (6 Months)
1
Buys
6
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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