Chart Of The Day: Should You Bet On DraftKings?

  • 100% technical buy signals
  • 17 new highs and up 34.93% in the last month
  • 114.20+ Weighted Alpha

The Chart of the Day belongs to the gambling company DraftKings (DKNG). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart  feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 1/ 22 the stock gained 34.93%.

(Click on image to enlarge)

DKNG Price vs Daily Moving Averages

DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. In addition, it offers DraftKings marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions. DraftKings Inc. is headquartered in Boston, Massachusetts.

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.


Barchart Technical Indicators:

  • 100% technical buy signals
  • 114.20+ Weighted Alpha
  • 150.06% gain in the last year
  • Trend Seeker buy signal
  • Above its 20, 50 and 100 day moving averages
  • 17 new highs and up 34.93% in the last month
  • Relative Strength Index 74.05%
  • Technical support level at $43.80
  • Recently traded at $44.46 with 50 day moving average of $37.37

Fundamental Factors:

  • Market Cap $38.20 billion
  • Wall Street projects Revenue will grow 64.10% this year and grow another 27.60% next year
  • Earnings are estimated to increase 51.90% this year, increase an additional 81.60% next year

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • Wall Street analysts issued 18 strong buy, 7 buy, 7 hold and 1 sell recommendation this month
  • Analysts price targets are $22.50 to $55.000 - with a consensus of $42.25 - 5% below its recent price ( weird with all the string buy and buy opinions)
  • The individual investors following the stock on Motley Fool voted 317 to 11 for the stock to beat the market with the most experienced investors voting 30 to 2 for the same result
  • Value Line gives the stock its average rating of 3 with  a price target of $32 for a 25%  loss
  • CFRAs MarketScope has a 4 star buy rating but a price target of $40 for an 11% loss
  • 80,000 investors monitor the stock on Seeking Alpha

More By This Author:

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Chart Of The Day: Apollo Asset Management - One Of My Favorite PE Companies
Chart Of The Day: Ironwood Pharma - Gastrointestinal Products

Disclosure: On the date of publication, Jim Van Meerten did not have (either directly or ...

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Wall St. Wolf 1 month ago Member's comment

I found $DKNG back at $34,March madness is coming traditionally it goes up. There is room for it to go back to where it was. I expect some profit taking to take place soon. So maybe a dip before next up to the $50+.

Jim Van Meerten 1 month ago Contributor's comment

looks like a good bet