DraftKings and Penn Entertainment stocks rise on strong Q4 results and market optimism.

DraftKings and Penn Entertainment stocks rose 5% and 7% respectively, boosted by strong Q4 2025 earnings and positive market sentiment. DraftKings reported a 43% revenue increase and its first full-year GAAP net income, while expanding its share buyback program, signaling confidence in its undervalued stock. Penn Entertainment showed a 73% growth in online sportsbook revenue, positive EBITDA in its Interactive segment, and launched a $750 million buyback plan, reflecting a strategic turnaround. Both companies benefit from improving fundamentals and a favorable market environment, suggesting potential sector recovery in 2026.