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Photo illustration by Cheng Xin/Getty Images Getty Images DraftKings (DKNG) stock has dipped by 22.1% in under a month, from $42.32 on 9/26/2025 to its current price of $32.96. What is on the horizon? It appears that the stock might decrease further. The ongoing correction, when viewed in the light of the stock's Extremely High valuation, indicates the potential for additional declines. A price of $23 is certainly a possibility, particularly as the stock has reached this figure in the past 5 years. So, should you hold off on purchasing during this dip? Possibly. There is no foolproof approach to timing dips. However, here is an alternative viewpoint on DKNG stock to assist you in making your decision. The stock has historically returned a median of 8.9% over one year, and 48% as the peak return following sharp dips (>30% over 30 days). For a brief overview, DKNG offers digital sports entertainment, daily sports wagering, iGaming options, and creates licensing software for online and retail sportsbooks and casino gaming platforms across various channels. For insights on stock fundamentals and evaluations: Read Buy or Sell DraftKings Stock to understand the complete picture. Investing in a single stock can be perilous, but a much greater advantage arises from a broader, diversified strategy. Quiz time: In the last 5 years, which index do you believe the Trefis High Quality Portfolio outperformed — the S&P 500, the S&P 1500 Equal Weighted, or both? The answer may surprise you. Discover how our advisory framework tips the odds in your favor. Historical Median Returns Following Dips Historical Median Returns Following Dips Detailed Historical Dip Insights DKNG experienced 8 events since 1/1/2010 where the dip threshold of -30% within 30 days was activated MORE FOR YOU 48% median peak return within a year after the dip event 132 days is the median duration to peak return after a dip event -2.3% median maximum drawdown within a year following the dip event Dip Performance DraftKings Passes Essential Financial Quality Assessments Revenue growth, profitability, cash flow, and the strength of the balance sheet should all be analyzed to mitigate the risk of a dip indicating a decline in business health. Quality Metrics While dip buying can be appealing, it must be assessed thoroughly from various perspectives. Such a multi-factor analysis is precisely how we create the Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, that has shown a track record of consistently outperforming its benchmark, which includes all three indices — the S&P 500, S&P mid-cap, and Russell 2000. What is the reason? In general, HQ Portfolio stocks have delivered superior returns with reduced risk compared to the benchmark index; a less turbulent experience, as demonstrated in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
