DraftKings Stock To $28?
DraftKings (DKNG) stock has fallen by 17.2% in less than a month, from $25.87 on 13th Mar, 2026 to $21.42 now. What comes next? We believe there is a good chance of a stock rebound considering history of recovery post-dips and our current Attractive opinion of the stock. Read Buy or Sell DraftKings Stock to see how we arrive at this opinion.
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, DKNG stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 24%, with median peak return reaching 67%. We define sharp dip as stock going down 20% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | -3.4% |
| 3M | 10.3% |
| 6M | 20.7% |
| 12M | 23.7% |
Historical Dip-Wise Details
DKNG had 11 events since 7/25/2019 where the dip threshold of -20% within 30 days was triggered
- 67% median peak return within 1 year of dip event
- 153 days is the median time to peak return after a dip event
- -22% median max drawdown within 1 year of dip event
| 30 Day Dip | DKNG Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | DKNG | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 24% | 67% | -22% | 153 | ||||
| 1302026 | -20% | 2% | -22% | 0% | -22% | 0 | ||
| 10012025 | -22% | 5% | -39% | 3% | -39% | 96 | ||
| 3282025 | -24% | -9% | -39% | 37% | -39% | 153 | ||
| 8022024 | -26% | -2% | 41% | 67% | -7% | 196 | ||
| 12152022 | -21% | 4% | 179% | 209% | -14% | 351 | ||
| 9262022 | -29% | -14% | 99% | 122% | -25% | 305 | ||
| 10152021 | -21% | -1% | -73% | 2% | -79% | 5 | ||
| 5032021 | -21% | 7% | -74% | 12% | -76% | 129 | ||
| 10282020 | -25% | -3% | 24% | 89% | -7% | 142 | ||
| 7132020 | -26% | 4% | 62% | 144% | 0% | 249 | ||
| 3122020 | -23% | -24% | 542% | 542% | 0% | 365 | ||
DraftKings Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 27.0% | Pass |
| Revenue Growth (3-Yr Avg) | 40.2% | Pass |
| Operating Cash Flow Margin (LTM) | 10.9% | Pass |
Not sure if you can take a call on DKNG stock? Consider portfolio approach
Portfolios Over Individual Stock Picks
Stocks can jump or crash but long term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.