DraftKings (NASDAQ:DKNG) has been one of the hottest stocks of the past year. Up an impressive 190%, it has soared past the S&P 500 and its 42% gains over the same time frame.
And although the company has been generating some terrific results, it continues to be bullish on its future.
When the company released its year-end results on Feb. 26, its sales of $322 million for the fourth quarter were up 146% year over year. Even on a pro-forma basis, assuming that acquisitions that gave it a boost this past quarter were completed on Jan. 1, 2019, its sales would still be up 98%.
Previously, the company was forecasting its 2021 fiscal revenue to come in between $750 million and $850 million. But now, the company projects that it will bring in up to $1 billion in sales this year.
CEO Jason Robins stated that "We are raising our revenue outlook for 2021 due to our expectation for continued growth, the outperformance of our core business and newly launched states that were not included in our previous guidance."
As more states pass legislation to legalize online sports betting, DraftKings will continue to see its opportunities expand and its results become even more impressive. The only caveat for investors right now is that the stock isn't cheap, trading at a price-to-sales multiple of nearly 30. That's a steep price to buy but for long-term investors who are looking to cash in on the industry's rapid growth, it may be well worth it.
