Is TKO Group Holdings Stock Underperforming the Dow?

New York-based TKO Group Holdings, Inc. (TKO) operates as a sports and entertainment company. Valued at a market cap of $38.6 billion, the company operates through three segments: UFC, WWE, and IMG, and distributes programming content; ticket sales and site fees associated with the business's global live events; partnerships and marketing; and consumer products licensing agreements, among others. 

Companies with a market cap of $10 billion or more are typically referred to as “big-cap stocks.” TKO fits squarely into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the entertainment industry.    

However, TKO stock is down 13.1% from its 52-week high of $226.94, reached on Feb. 26. Moreover, TKO has risen 4.7% over the past three months and has lagged the Dow Jones Industrial Average ($DOWI), which rose 11.9% during the same period.    

Zooming out a little further, the scenario remains the same. Over the past 52 weeks, TKO has grown 12.8%, underperforming DOWI’s 21.4% gain.       

TKO has been trading mostly below its 200-day and 50-day moving averages since the end of last month, with some fluctuations.

On May 6, TKO stock rose 1.9% following the release of its Q1 2026 earnings. The company’s revenue for the quarter amounted to $1.6 billion and surpassed the Street’s estimates. Moreover, its adjusted EPS for the period came in at $1.12, also topping Wall Street’s forecasts. TKO Group expects full-year revenue in the range of $5.68 billion to $5.78 billion. 

When stacked against its peer, Formula One Group (FWONA), TKO has outperformed. Over the past year, FWONA stock has declined 11.7%.    

Wall Street currently has a moderately bullish view of the stock. Among the 24 analysts tracking TKO, the overall consensus stands at a “Moderate Buy.” Its mean price target of $231.05 offers a 17.1% upside potential from current prices.