Triumphing Over Trends: AI Swing Trader Scores a 49.67% Annual Return for DraftKings (DKNG)
In the face of downward trends and volatility, the capabilities of Artificial Intelligence (AI) come to the fore. Our AI-based Swing Trader: Downtrend Protection (TA) strategy exemplifies this, boasting a stunning 49.67% return for DraftKings (DKNG) over the past year.
Market Cap Observations in the Casinos/Gaming Industry
DKNG, a player in the Casinos/Gaming Industry, is part of a sector with an average market capitalization of $4.69B. Market caps in this industry show a vast range, extending from a mere 152.98K to an impressive 43.78B. LVS holds the highest valuation in this group at 43.78B, while ROBK resides at the bottom of the pile with 152.98K.
A Close Look at Price Movement Trends
Over the past year, the Casinos/Gaming Industry has experienced an average weekly price growth of -2%. The monthly price growth averages at -1%, while the quarterly growth stands at 14%. Notwithstanding these averages, PSDMF managed to chalk up the highest price growth at 16%, with EBET facing the steepest fall at -30%.
Volume Growth Analysis
Interestingly, the weekly volume growth across all stocks in the Casinos/Gaming Industry has seen a robust increase of 62%. More striking are the monthly and quarterly volume growth figures, both climbing to a healthy 107% and 121% respectively.
Understanding DKNG's Downward Trend
DKNG has been on a -3.01% downward trend, declining for three consecutive days as of June 16, 2023. This is typically seen as a bearish sign and could potentially indicate further declines. Historical data where DKNG has declined for three days suggests that in 184 of 224 cases, the price has dropped further within the subsequent month. This places the odds of a continued downward trend at a hefty 82%.
Conclusion
The AI Swing Trader: Downtrend Protection (TA) has indeed validated its strength, even under the pressures of downward trends. By generating an impressive 49.67% return for DKNG over the past year, the strategy has adeptly navigated the complexities of market capitalization, price, and volume trends to translate AI's potential into substantial profit. This success underlines a promising future for AI in trading, with its role only set to expand in the coming years.
DKNG in -3.74% downward trend, falling for three consecutive days on September 20, 2023
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where DKNG declined for three days, in of 241 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for DKNG moved out of overbought territory on September 12, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 56 cases where DKNG's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on September 20, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DKNG as a result. In of 73 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 September 20, 2023. 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 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Bullish Trend Analysis
DKNG moved above its 50-day moving average on August 29, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for DKNG crossed bullishly above the 50-day moving average on September 07, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 9 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DKNG advanced for three days, in of 231 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 260 cases where DKNG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (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 (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 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: P/B Ratio (13.699) is normal, around the industry mean (10.866). P/E Ratio (0.000) is within average values for comparable stocks, (63.250). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (0.167). Dividend Yield (0.000) settles around the average of (0.052) among similar stocks. P/S Ratio (4.550) is also within normal values, averaging (5.396).
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 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 84, placing this stock worse than average.
Notable companies
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
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
DKNG and
Correlation & Price change
A.I.dvisor indicates that over the last year, DKNG has been loosely correlated with CZR. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if DKNG jumps, then CZR could also see price increases.
| Ticker / NAME | Correlation To DKNG | 1D Price Change % | ||
|---|---|---|---|---|
| DKNG | 100% | -0.03% | ||
| CZR - DKNG | 54% Loosely correlated | +0.72% | ||
| RSI - DKNG | 53% Loosely correlated | -1.44% | ||
| LNW - DKNG | 44% Loosely correlated | -0.27% | ||
| BALY - DKNG | 42% Loosely correlated | -1.58% | ||
| FLL - DKNG | 42% Loosely correlated | -5.94% | ||
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