DraftKings Is a Top Analyst Pick Ahead of NFL Draft. Here's Why
DraftKings is outperforming in 2024 and analysts think there is more upside for the stock. Here's what you need to know.
![DraftKings logo on a smartphone reflected on table top with five dollar bills](https://cdn.mos.cms.futurecdn.net/drCtYNuPThNAfrn6Dhp8TH-415-80.jpg)
DraftKings (DKNG) is up more than 15% in 2024 through April 25, easily outperforming the S&P 500's roughly 6% gain. Analysts are overwhelmingly bullish on the sports betting stock ahead of the NFL draft, which kicks off tonight at 8 pm Eastern time.
Speaking for the bulls is Needham analyst Bernie McTernan, who added DraftKings to his Conviction List on March 27. The analyst maintained his Buy rating and raised his price target to $58 from $54, representing implied upside of about 43% to current levels.
"The market seems to be putting a greater emphasis on growth now, and we believe DKNG has the best growth outlook in our coverage over the next 24 months, especially factoring in valuation and estimated risk-reward," McTernan says. "We are bullish on the potential for near-term market access gains, per capita spending continues to ramp in existing states and DKNG [to] maintain its first or second place position in all states.”
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
That same day, UBS reiterated its Buy rating and $56 price target on DraftKings' stock, implying upside of about 37% from current levels.
More recently, Susquehanna Financial Group analyst Joseph Stauff called DraftKings a Buy in an April 16 note.
The bullish outlook of these three firms is widely shared across Wall Street. According to S&P Global Market Intelligence, the consensus analyst target price for DraftKings stock is $51.45, representing implied upside of about 26% to current levels. Meanwhile, the consensus recommendation is a Buy.
DraftKings will make an appearance on next week's earnings calendar, disclosing its first-quarter results after the May 2 close. According to Yahoo Finance, analysts, on average, are targeting revenue of $1.1 billion, an increase of 45.7% year-over-year. Its per-share loss is expected to narrow to 28 cents from 87 cents in the year-ago period.
How to watch the NFL draft
The NFL draft may not be an immediate catalyst for the consumer discretionary stock. However, the players chosen this weekend will likely stoke interest in online sports betting once the regular season kicks off in September.
Indeed, in Q4 2023, DraftKings saw revenue spike 68% year-over-year and monthly unique payers jump 37%.
For those interested in seeing which players get picked up this weekend, there are several ways to watch the draft, according to the NFL.
On your TV, you can view it on NFL Network, ABC, ESPN and ESPN Deportes.
If you're watching on a connected TV, smartphone, tablet or other smart device, you can stream it on the NFL Plus app, ABC app, ESPN app or the Streaming En Vivo app.
In international markets, the NFL draft is available on the NFL Game Pass through DAZN.
If you just want to listen, you can do so on SiriusXM, Westwood One Sports or ESPN Radio.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Eight Key Steps to Take When Investing in the Stock Market
The stock market can be a confusing place for beginners, but it doesn't have to be.
By Kiplinger Advisor Collective Published
-
Confused by Annuities? Making Sense of the Different Types
Many investors aren't sure if annuities are a good option for meeting financial goals. Let's look at the different categories, along with their pros and cons.
By Kris Maksimovich, AIF®, CRPC®, CPFA®, CRC® Published
-
Stock Market Today: Stocks Slip Ahead of Mega-Cap Earnings
GE Aerospace shares soared after earnings while United Parcel Service stock slumped.
By Karee Venema Published
-
Is GE Stock Still a Buy After Big Earnings Beat?
GE stock is higher Tuesday after the industrial giant's beat-and-raise quarter, but what do analysts think? We take a closer look here.
By Joey Solitro Published
-
UPS Stock Heads Toward Worst Day Ever After Earnings
UPS stock is down big after coming up short of analysts’ expectations for its second quarter and cutting its outlook. Here’s what you need to know.
By Joey Solitro Published
-
Spotify Stock Surges After Q2 Earnings Beat: What to Know
Spotify stock is flying higher Tuesday after the streaming giant reported its second-quarter earnings results. Here's what you need to know.
By Joey Solitro Published
-
Stock Market Today: Mega-Cap Tech Rallies to Drag Markets Higher
Markets focused on upcoming earnings from Magnificent 7 stocks rather than chaos in D.C.
By Dan Burrows Published
-
Stock Market Today: Stocks Tumble After Spectacular Global Internet Crash
Market participants rushed out of risk assets to end a wild week of trading.
By Dan Burrows Published
-
Stock Market Today: Dow Sinks 533 Points as Big Banks, Mega Caps Slump
Goldman Sachs and Apple were two of the worst-performing blue chip stocks on Thursday.
By Karee Venema Published
-
Paris Olympics: 5 Sports-Related Stocks Going for Gold
Tactical investors may want to keep an eye on these sports-related stocks as the countdown to the Paris Olympics begins.
By Jeff Reeves Published