DraftKings (DKNG, $61.80) get buy rating, Wall Street-high price target at Needham
On Thursday, DraftKings shares got a buy rating and Wall Street-high price target of $70 a share at Needham.
Needham analyst Brad Erickson initiated coverage of the sports betting company’s stock on Thursday. It views the company as one of the leading beneficiaries from online sports betting’s taking off in the U.S. – an opportunity that Needham estimates to be between $42 [billion] and $58 billion annually longer term.
According to Erickson, online providers' access to data creates a structurally better user experience vs. brick and mortar. For DraftKings in particular, the analyst sees its "datacentric approach to customer acquisition" as a force that’ll help the company "regularly exceed top-line forecasts."
Tickeron's analysis suggests: Momentum Indicator for DKNG turns positive, indicating new upward trend
DKNG saw its Momentum Indicator move above the 0 level on September 02, 2020. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 2 similar instances where the indicator turned positive. In 2 of the 2 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.
Throughout the month of 08/31/20 - 10/01/20, the price experienced a +75% Uptrend. During the week of 09/24/20 - 10/01/20, the stock enjoyed a +22% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
DKNG moved above its 50-day Moving Average on August 18, 2020 date and that indicates a change from a downward trend to an upward trend.
Following a +10.93% 3-day Advance, the price is estimated to grow further. Considering data from situations where DKNG advanced for three days, in 25 of 28 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.
The Aroon Indicator entered an Uptrend today. In 10 of 11 cases where DKNG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
Bearish Trend Analysis
The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 14 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
DKNG broke above its upper Bollinger Band on October 01, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 88%. During the last month, the daily ratio of advancing to declining volumes was 2.74 to 1.
The Tickeron PE Growth Rating for this company is 27 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. DKNG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 95 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 99 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.00) is normal, around the industry mean (3.78). DKNG has a moderately high P/E Ratio (615.43) as compared to the industry average of (144.51). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (2.70). Dividend Yield (0.00) settles around the average of (0.11) among similar stocks. DKNG's P/S Ratio (136.92) is very high in comparison to the industry average of (7.46).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DKNG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
DKNG's RSI Oscillator climbs out of oversold territory
The RSI Indicator for DKNG moved out of oversold territory on August 06, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 30 similar instances when the indicator left oversold territory. In of the 30 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DKNG advanced for three days, in of 297 cases, the price rose further within the following month. The odds of a continued upward trend are .
DKNG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 26, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DKNG as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DKNG turned negative on August 31, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
DKNG moved below its 50-day moving average on August 31, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DKNG crossed bearishly below the 50-day moving average on September 04, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DKNG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for DKNG entered a downward trend on August 17, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DKNG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: DKNG's P/B Ratio (20.790) is very high in comparison to the industry average of (6.024). DKNG has a moderately high P/E Ratio (246.333) as compared to the industry average of (81.894). Projected Growth (PEG Ratio) (0.058) is also within normal values, averaging (0.123). Dividend Yield (0.000) settles around the average of (0.032) among similar stocks. P/S Ratio (1.899) is also within normal values, averaging (1.693).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DKNG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 97, placing this stock worse than average.
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a digital sports entertainment and gaming company, which provides online and retail sports wagering offerings, online daily fantasy contests and online casino games
Industry CasinosGaming
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