Anticipating the Stock Market's Future Following a Three-Year Bull Run

Written by Emily J. Thompson, Senior Investment Analyst

DKNG-3.87%

STZ-1.28%

FLUT-2.7%

Source: MarketWatch

Updated: Oct 10 2025

0mins

Source: MarketWatch

Bull and Bear Market Definitions: A bull market is defined as a rise of at least 20%, while a bear market is a decline of 20%. The current bull market for the S&P 500 has lasted nearly three years.
Market Performance: The S&P 500 experienced a maximum decline of 19% during this bull market, primarily after a tariff announcement in April 2025, but has since recovered, achieving a return of 15.7% for the year through Thursday.

DKNG

$30.3951+Infinity%1D

Analyst Views on DKNG

Wall Street analysts forecast DKNG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DKNG is 43.76 USD with a low forecast of 30.00 USD and a high forecast of 63.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

30 Analyst Rating

23 Buy

7 Hold

0 Sell

Strong Buy

Current: 31.620

Low

30.00

Averages

43.76

High

63.00

Current: 31.620

Low

30.00

Averages

43.76

High

63.00

JPMorgan

Overweight -> NULL

downgrade

$42 -> $41

2026-01-23

New

Reason

JPMorgan

Price Target

$42 -> $41

AI Analysis

2026-01-23

New

downgrade

Overweight -> NULL

Reason

JPMorgan lowered the firm's price target on DraftKings to $41 from $42 and keeps an Overweight rating on the shares. The firm adjusted targets in the gaming space as part of a Q4 earnings preview. Gaming stocks "are carrying a lot of baggage and negativity," so investors should be selective, the analyst tells investors in a research note. JPMorgan believes digital is the segment with the greatest opportunity for earnings beats.

Morgan Stanley

Overweight

maintain

$50 -> $53

2026-01-16

Reason

Morgan Stanley

Price Target

$50 -> $53

2026-01-16

maintain

Overweight

Reason

Morgan Stanley raised the firm's price target on DraftKings to $53 from $50 and keeps an Overweight rating on the shares. Gaming, lodging and leisure fundamentals were "muted" in 2025, with select areas of acceleration skewed to companies serving older, wealthier consumers, the analyst tells investors in a 2026 look ahead note on the group. For 2026, the firm expects "more of the same fundamentally," with the added wrinkle of rates boosting goods over services, the analyst added.

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Texas Capital

Hold

initiated

$39

2026-01-08

Reason

Texas Capital

Price Target

$39

2026-01-08

initiated

Hold

Reason

Texas Capital initiated coverage of DraftKings with a Hold rating and $39 price target. While the firm says it normally would view buying a "blue chip" online gaming stock, such as DraftKings, on its recent valuation dip as a buying opportunity, it sees outsized stock volatility in the relative near-term given the company's pure-play nature combined with recent prediction market expansion, current investor skepticism on hold and win-rate and possible online gaming tax increases in a few states, adding that the firm is "Neutral but not negative."

BofA

Shaun Kelley

Neutral

maintain

$35

2026-01-05

Reason

BofA

Shaun Kelley

Price Target

$35

2026-01-05

maintain

Neutral

Reason

BofA analyst Shaun Kelley raised the firm's price target on DraftKings to $37.50 from $35 and keeps a Neutral rating on the shares. The Gaming and Lodging group "appears to be at a crossroads" to start 2026 as the year offers easy comps, OBBB refunds and stimulus, but also still has a stretched consumer after years of inflation, the analyst tells investors. Negative estimate revisions trumped low valuations in 2024 and 2025 and the firm is "fearful this continues in 2026," the analyst added in a note on the group.

About DKNG

DraftKings Inc. is a digital sports entertainment and gaming company. It provides users with online and retail sports betting (together, Sportsbook), online casino (iGaming) and daily fantasy sports product offerings, as well as digital lottery courier, media, and other product offerings. Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. It operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. It owns Jackpocket, a digital lottery courier app in the United States. It is both an official daily fantasy and sports betting partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA. It also owns and operates DraftKings Network, a multi-platform content ecosystem.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.