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DAKT vs. ROK: Which Stock Should Value Investors Buy Now?
ZACKSยท2025-10-15 16:41

Core Viewpoint - Investors in the Electronics - Miscellaneous Products sector should consider Daktronics (DAKT) and Rockwell Automation (ROK) for potential value opportunities, with DAKT currently presenting a stronger case for investment [1]. Valuation Metrics - DAKT has a forward P/E ratio of 18.26, significantly lower than ROK's forward P/E of 29.99, indicating that DAKT may be undervalued relative to ROK [5]. - The PEG ratio for DAKT is 0.61, suggesting a favorable growth outlook compared to ROK's PEG ratio of 3.09, which indicates a higher valuation relative to its growth rate [5]. - DAKT's P/B ratio stands at 3.49, while ROK's P/B ratio is considerably higher at 10.66, further supporting the notion that DAKT is a more attractive value option [6]. Investment Ratings - DAKT currently holds a Zacks Rank of 2 (Buy), while ROK has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for DAKT compared to ROK [3]. - Based on the combination of valuation metrics and earnings outlook, DAKT is rated with a Value grade of B, whereas ROK has a Value grade of D, reinforcing DAKT's position as the superior value investment [6].