Daktronics(US:DAKT) ZACKS·2026-01-21 18:01Core 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].