Daktronics (DAKT): Discover This “Sweet 16” Stock

Daktronics (DAKT) is one of the most attractive stocks in the Zen Ratings universe. This comes across loud and clear when you appreciate that it is currently the 16th highest rated out of 4,480 stocks. 

As per usual, Growth and sparkling Financials ratings are the hallmark of a stock sitting on top of the Zen Ratings. In DAKT’s case, there are many drivers of growth for this leading supplier of large screen LED video displays for stadiums as well as commercial usage. 

Daktronics is executing a multi-year transformation plan that’s already showing traction. This includes a streamlining of operations that includes: improving inventory turnover, reducing accounts receivable / contract assets, and leveraging purchasing power to lower input costs.

Not to mention they are starting to move beyond just selling hardware. Recently they launched a “Service” software system to enhance customer experience, service efficiency, and generate recurring service revenues for the firm. 

All in all, this has led to impressive growth that is expected to continue thanks to international expansion that is showing up prominently in their swelling backlog of business. This backlog also points to more growth ahead with Wall Street analysts expecting 20% year over year earnings growth going into next year. 

As already shared, the Zen Ratings is picking up on these sparkling fundamentals. That is why it is currently the 16th highest rated shares overall. And why it appears as one of the top stocks in 2 of our coveted Zen Strategies portfolios: Small Caps and Technology.

Let’s dig into the specifics of what we find with the Zen Ratings 115 factor analysis of Daktronics: 

Top 25% Value

Top 15% AI Factors

Top 14% Growth

Top 10% Safety

Top 8% Sentiment

Top 4% Financials

This is a case of their not being any weakness in the fundamental profile for this stock. And yet still the recent market correction has led to a nearly 30% pullback in shares from the highs.

That says to me that opportunity is knocking to buy one of the most impressive stocks at a truly attractive entry price.  

What To Do Next?

Daktronics (DAKT) is just one of 20 stellar stocks found in my Zen Investor portfolio.

Each stock was selected by harnessing the power of the Zen Ratings along with my 45 years of successful investing experience. 

This dynamic combination has us pinpointing stocks with the unique opportunity to double or more in the next 1-2 years. 

If that appeals to you, then please click below to learn more about my investment process…and how to see my current top 20 stock recommendations. 

Discover the Zen Investor portfolio & Top 20 Stocks Now > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

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