Core Viewpoint - The Trump administration is expected to add Alibaba and other Chinese firms to a list of companies allegedly aiding China's military, which could impact their future contracts with the U.S. government [1]. Group 1: Companies Involved - Alibaba is among the companies expected to be added to the Pentagon's 1260H list, which includes major firms like Tencent Holdings and CATL [1]. - Other firms mentioned for potential inclusion are AI firm DeepSeek, smartphone maker Xiaomi, and electronic display maker BOE Technology [1]. Group 2: Implications of the List - Being added to the list does not impose formal sanctions but prevents the Pentagon from contracting with these companies in the future [1]. - The update to the list may strain U.S.-China relations, especially following a recent trade truce between Xi Jinping and Donald Trump [1].

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].

Group 1: CI&T Inc. (CINT) - CI&T Inc. is a strategy, design, and software engineering services company with a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 3.3% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 13.55, slightly lower than the industry average of 13.60, and possesses a Value Score of A [1] Group 2: Newmont Corporation (NEM) - Newmont Corporation is a producer and explorer of gold and other metals, also holding a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has risen by 6.9% over the last 60 days [2] - The company has a P/E ratio of 16.29, significantly lower than the S&P 500 average of 24.48, and has a Value Score of B [2] Group 3: Daktronics, Inc. (DAKT) - Daktronics, Inc. specializes in electronic display systems and carries a Zacks Rank of 1 [3] - The Zacks Consensus Estimate for its current year earnings has also increased by 6.9% over the last 60 days [3] - The company has a P/E ratio of 17.94, which is lower than the S&P 500 average of 24.48, and holds a Value Score of B [3]

Market Overview - U.S. stock markets are experiencing a continued upward trend in 2025, with major indexes like the Dow, S&P 500, and Nasdaq Composite near all-time highs [1] - Expectations for the Federal Reserve's first interest rate cut in 2025 have surged, with a 100% probability of a 25-basis-point cut anticipated in the upcoming September FOMC meeting [2] Stock Performance - Several stocks have shown significant price strength, particularly those on a bull run, indicating a high chance of maintaining momentum [2] - Five highlighted stocks include DRDGOLD Ltd. (DRD), Daktronics Inc. (DAKT), NCS Multistage Holdings Inc. (NCSM), Build-A-Bear Workshop Inc. (BBW), and Vishay Precision Group Inc. (VPG) [3] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks, indicating recent upward movement [5] - A percentage change in price greater than 10% over the last 12 weeks is required to ensure sustained momentum [5] - Stocks must have a Zacks Rank of 1 (Strong Buy) and an average broker rating of 1, indicating strong future performance expectations [6] - Current stock prices must be above $5 and trading near their 52-week highs, with a price/52-week high-low range greater than 85% [7] Individual Stock Highlights - **DRDGOLD Ltd. (DRD)**: Stock price increased by 49.9% in four weeks, with an expected earnings growth rate of 13.3% for the current year and an 80% improvement in earnings estimates [8][9] - **Daktronics Inc. (DAKT)**: Stock price rose by 39.1% in four weeks, with an expected earnings growth rate of 28.2% and a 6.9% increase in earnings forecasts [8][11] - **NCS Multistage Holdings Inc. (NCSM)**: Stock price climbed 38.4% in four weeks, with an expected earnings growth rate of 6.7% and a 62% improvement in earnings estimates [8][13] - **Build-A-Bear Workshop Inc. (BBW)**: Stock price surged 33.1% in four weeks, with an expected earnings growth rate of 6.9% and a 3.9% increase in earnings estimates [8][15] - **Vishay Precision Group Inc. (VPG)**: Stock price rallied 14.4% in four weeks, with an expected earnings growth rate of -27.4% and a 5.8% improvement in earnings estimates [8][18]