Score 7.6 (out of 10): DRAFTKINGS INC – CL A sets up for +12% rally in 3 months

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What’s Going On Here?

The SuperBowl could have been a great time to buy DRAFTKINGS. The internet gambling business is likely to have profited from the huge crowds and engagements that the sports event has had globally (Coinbase’s website crashed). ‘Wall Street’ sees +67% upside in DRAFTKINGS’ shares.

Why Now?

DRAFTKINGS INC – CL A has reached a new shorter-term high. Previously, during similar occasions, DRAFTKINGS INC – CL A shares had a median return of +12%, over the following 3 months – based on 8 historical occasions with 7 of those showing positive returns (88% hit ratio). This buy signal for DRAFTKINGS INC – CL A received a high score of 7.6 (out of 10). This insight was generated on 2022-February-15 with last price of 23.73.

What’s This Company About?

DRAFTKINGS INC – CL A is in the Internet Gambling business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. ‘Wall Street’ analysts think the stock price will be worth +67% (average). Ticker symbol: DKNG US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 26.57 (+12%) has been reached. Based on DRAFTKINGS INC – CL A’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 21.03 (last price at 23.73), which is equivalent to a -11.4% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

-15.4% (August-2021), 14% (June-2021), 2.3% (January-2021), 31% (November-2020), 9.9% (July-2020), 52.7% (February- 2020), 45.5% (October-2019), 1.9% (August-2019).

Historical Chart:

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Summary:

NameDRAFTKINGS INC – CL A
ViewUp
Star (1 to 10)7.6
Target+12%
Time3 months
Hist Rate88%

Popular Insights:

INFOSYS has denied that the company is launching a crypto project. But the company continues to expand aggressively in Costa Rico. ‘Wall Street’ analysts’ think the shares will rally +22% over the next 12 months.

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