Group 1 - Steven Cress is the Head of Quantitative Strategies at Seeking Alpha, managing quant ratings and factor grades on stocks and ETFs [1][2] - Cress leads Alpha Picks, selecting two attractive stocks to buy each month and determining when to sell them [1][2] - The Seeking Alpha Quant Rating system, created by Cress, interprets data for investors and offers insights on investment directions [2] Group 2 - Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, enhancing his expertise in investment topics [2] - Prior to Seeking Alpha, Cress founded CressCap Investment Research and Cress Capital Management, and worked at Morgan Stanley and Northern Trust [2]

Core Viewpoint - Investors in the Electronics - Miscellaneous Products sector may find Daktronics (DAKT) and Garmin (GRMN) to be potential value investment opportunities, with DAKT currently appearing more attractive based on various valuation metrics [1]. Valuation Metrics - Daktronics has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Garmin has a Zacks Rank of 3 (Hold) [3]. - DAKT's forward P/E ratio is 20.31, compared to Garmin's 23.00, suggesting that DAKT may be undervalued relative to GRMN [5]. - The PEG ratio for DAKT is 0.68, indicating a favorable valuation when considering expected earnings growth, while GRMN's PEG ratio is significantly higher at 2.13 [5]. - DAKT's P/B ratio stands at 3.78, while GRMN's P/B ratio is 4.57, further supporting DAKT's position as a more attractive value option [6]. - Overall, DAKT has a Value grade of B, while GRMN has a Value grade of D, highlighting DAKT's superior valuation metrics and earnings outlook [6].

Core Insights - Daktronics is experiencing operational momentum with a focus on transformation initiatives and leadership changes, including the appointment of a new CEO and the ramp-up of a manufacturing facility in Mexico [4][7]. Business Overview - The company operates in five primary business areas: live events, high school parks and recreation, commercial, transportation, and international, alongside control systems that provide a subscription-based SaaS revenue opportunity [1]. - Daktronics is the leading North American LED video display provider by revenue, with trailing 12-month revenue of approximately $770 million as of the second quarter of fiscal 2026 [2]. Leadership Changes - Acting CEO Brad Wiemann will transition leadership to incoming CEO Ramesh Jayaraman on February 1, with Jayaraman expected to conduct a "look, listen, and learn" phase before providing a strategic update at an Investor Day in early April [3][14]. Financial Performance - The company reported a third consecutive quarter of revenue growth, with orders increasing by 12% year-over-year and an adjusted net income of $17.5 million, alongside a gross margin of 27% and an operating margin of 9.4% [5][12]. - Cash at quarter-end was $138 million, with share repurchases totaling $12.2 million year-to-date and an additional $20 million authorized by the board [13]. Manufacturing Expansion - A new facility in Saltillo, Mexico, is expected to begin operations in April–May, aimed at adding capacity and diversifying the manufacturing footprint, as approximately 80% of revenue currently comes from U.S. plants [6][15]. - The Mexico facility will be USMCA-compliant and is part of a broader strategy for scalability and growth [7][15]. Product and Technology Investments - Daktronics is investing in narrow pixel pitch indoor products, high-resolution outdoor solutions, micro-LED technology, and SaaS control solutions, which are expected to yield returns [8]. - The company is also focusing on value-based pricing and project bidding "guardrails" as part of its transformation efforts [9]. Market Position and Competition - Daktronics has installations in over 120 countries and serves more than 12,000 customers annually, with a strong backlog indicating a multi-quarter revenue runway [3][10]. - The competitive landscape varies by segment, with some large competitors exiting the live events market, creating opportunities for Daktronics to engage with customers seeking replacements [17].

Daktronics Conference Call Summary Company Overview - **Company Name**: Daktronics - **Ticker Symbol**: DAKT - **Industry**: LED video display and digital signage - **Key Personnel**: - Brad Wiemann, Acting CEO - Howard Atkins, Acting CFO - New CEO Ramesh Jayaraman starting February 1st, 2024 [2][26] Core Business and Market Position - Daktronics is a leading provider of LED video displays, serving various sectors including sports, transportation, and commercial advertising [3][4] - The company operates in over 120 countries and serves more than 12,000 customers annually [4] - It is recognized as the number one North American LED video display provider and the largest growing American brand by revenue [4] Financial Performance - **Trailing 12 Months Revenue**: Approximately $770 million as of Q2 2026 [4] - **Adjusted Net Income**: Increased to $17.5 million from $13.9 million year-over-year [14] - **Pre-Tax Operating Income**: Rose to $21.6 million compared to $15.8 million the previous year [15] - **Gross Profit Margin**: 27% for the quarter, with an operating margin of 9.4%, approaching the target range of 10%-12% [16] - **Order Growth**: Orders increased by 12% year-over-year, contributing to a strong backlog and multi-quarter revenue runway [12] Strategic Initiatives - Daktronics is undergoing a transformation initiative aimed at improving operational efficiency and financial performance [10][19] - The company is focusing on value-based pricing and enhancing service offerings to improve margins [22] - Investments in technology include narrow pixel pitch products, micro-LED technologies, and SaaS control solutions [10][11] Manufacturing and Supply Chain - Approximately 80% of products are manufactured in U.S. facilities, with additional operations in Ireland and Shanghai [8] - A new facility in Saltillo, Mexico is set to come online in April-May 2024, aimed at enhancing growth capacity and supply chain flexibility [8][27] Customer Engagement and Retention - Customers typically use Daktronics displays for 7-10 years, leading to repeat business for upgrades [9] - The company emphasizes strong customer relationships through high-quality service and support [9] Competitive Landscape - The competitive environment has seen some exits of large competitors, providing Daktronics with opportunities to capture market share from former customers [32] - The company is well-positioned to grow despite varying competition across its market segments [32] Future Outlook - The company aims for a return on invested capital of 17%-20% and a growth rate of 7%-10% [19][20] - Upcoming Investor Day in early April 2024 will provide further insights into strategic initiatives under the new CEO [26] Additional Notes - The company is implementing digital transformation initiatives to enhance customer experience and operational efficiency [24] - Share repurchase programs are in place, with a capacity of $25.7 million authorized by the board [18]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining stock price trends for successful short-term investing, highlighting the use of a specific screening strategy to find stocks with strong fundamentals and positive momentum. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to sustain their recent upward trends, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - Daktronics (DAKT) is highlighted as a candidate that passed the screening, showing a solid price increase of 12.8% over the past 12 weeks, reflecting investor confidence in its potential upside [4]. - DAKT has also experienced an 18.8% price increase over the last four weeks, confirming that the upward trend is still intact [5]. Group 2: Fundamental Analysis - DAKT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), indicating high optimism from the brokerage community regarding its near-term price performance [7]. - The article suggests that the price trend for DAKT is unlikely to reverse soon, reinforcing its potential as a strong investment option [8].

Investor Presentation January 22, 2026 NASDAQ: DAKT CONTROL SYSTEMS DYNAMIC MESSAGE SIGNS SAFE HARBOR STATEMENT Forward-Looking Statements: In addition to statements of historical fact, this presentation contains forward-looking statements within the meaning of the federal securities laws and is intended to receive the protections of such laws. All statements, other than historical facts, included or incorporated in this release could be deemed forward-looking statements, particularly statements that reflec ...

Core Viewpoint - Daktronics (DAKT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements when they buy or sell large quantities [3]. Company Performance and Outlook - The upgrade for Daktronics reflects an improvement in its underlying business, suggesting that investor sentiment regarding this trend could drive the stock price higher [4]. - For the fiscal year ending April 2026, Daktronics is expected to earn $1.14 per share, with a 4.6% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Daktronics' upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

Core Viewpoint - Daktronics (DAKT) is identified as a promising momentum stock, currently holding a Momentum Style Score of A and a Zacks Rank of 2 (Buy) [2][3][11] Momentum Characteristics - Momentum investing focuses on following a stock's recent price trends, with the aim of capitalizing on established price movements [1] - The Zacks Momentum Style Score incorporates metrics such as price changes and earnings estimate revisions to evaluate stocks [2] Performance Metrics - Over the past week, DAKT shares increased by 6.95%, while the Zacks Electronics - Miscellaneous Products industry remained flat [5] - In a longer timeframe, DAKT's shares rose by 13.34% over the past month, significantly outperforming the industry's 0.27% [5] - Over the last quarter, DAKT shares increased by 4.48%, and over the past year, they rose by 21.85%, compared to the S&P 500's gains of 3.09% and 17.53%, respectively [6] Trading Volume - DAKT's average 20-day trading volume is 601,251 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for DAKT has increased, raising the consensus estimate from $1.09 to $1.14 [9] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [9] Conclusion - Given the strong performance metrics and positive earnings outlook, DAKT is positioned as a solid momentum pick for investors [11]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Daktronics (DAKT) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][11]. Group 1: Earnings Growth - Daktronics has a historical EPS growth rate of 71.1%, with projected EPS growth of 34.1% for the current year, significantly outperforming the industry average of 15.3% [5]. Group 2: Asset Utilization Ratio - The company boasts an asset utilization ratio (sales-to-total-assets ratio) of 1.45, indicating it generates $1.45 in sales for every dollar in assets, compared to the industry average of 0.71, showcasing superior efficiency [6]. Group 3: Sales Growth - Daktronics is expected to achieve a sales growth rate of 10.9% this year, while the industry average is stagnant at 0% [7]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Daktronics have been revised upward by 4.6% over the past month, indicating a positive trend in earnings estimate revisions [9]. Group 5: Overall Assessment - Daktronics has earned a Zacks Rank of 2 (Buy) and a Growth Score of A, suggesting it is a potential outperformer and a solid choice for growth investors [11].

Core Viewpoint - Daktronics (DAKT) is currently viewed as a more attractive option for value investors compared to MKS (MKSI) based on various valuation metrics and earnings outlook [3][7]. Valuation Metrics - DAKT has a forward P/E ratio of 17.20, while MKSI has a forward P/E of 21.24, indicating that DAKT may be undervalued relative to MKSI [5]. - The PEG ratio for DAKT is 0.57, suggesting a better valuation considering expected earnings growth, compared to MKSI's PEG ratio of 1.66 [5]. - DAKT's P/B ratio stands at 3.2, while MKSI's P/B ratio is higher at 4.18, further supporting DAKT's position as a more attractive value investment [6]. Earnings Outlook - DAKT is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, indicating a positive trend in earnings estimates [3][7].