Daktronics - AI Stock Analysis

Analysis generated January 5, 2026

Daktronics, a renowned name in digital signboard manufacturing, has gained prominence in the industry for its cutting-edge visualization products. From LED video displays to sports scoreboards, the company prides itself on its innovation and ability to adapt to market trends. With a diverse portfolio catering to events, advertising, and transportation sectors, Daktronics continues to expand its footprint through strategic project executions and partnerships.

Fundamental Analysis

Daktronics reported a revenue of $229 million for the last quarter, marking a 4.70% increase compared to the previous quarter and a robust 10.04% year-over-year growth. This positive trend indicates an upward trajectory in the company’s ability to generate sales and maintain market relevance.

The net income for the last quarter stood at $17 million, reflecting a 6.14% increase from the previous quarter. While this quarterly increase is promising, the year-over-year comparison shows a decline of 18.34%, raising concerns about the company's ability to maintain profitability over the long term.

EBITDA for the last quarter was $22 million, although it saw a significant decrease of 23.20% compared to the preceding quarter. However, there was a 4.32% year-over-year increase, indicating some level of stabilization.

The current Price-to-Earnings (P/E) ratio is 165.33, which could indicate potential overvaluation. A high P/E ratio generally suggests high investor expectations but also warns of the risk of overpricing.

Technical Analysis

The current stock price of Daktronics is $20.14, a strong 15.02% increase from a month ago, highlighting positive short-term market sentiment. Additionally, a year-over-year increase of 20.89% suggests a favorable long-term trend.

The Simple Moving Average (SMA10) stands at 19.50, up from the previous 19.34, which signals an upward trend in price movement. This short-term bull momentum could be attractive for traders.

The Relative Strength Index (RSI) is currently at 49.3, indicating a neutral market condition, neither overbought nor oversold.

Alternative Data Analysis

Daktronics has 44 open job positions, a decrease of 28% in recent months. This trend can indicate efforts to improve margins or cut costs, which may not bode well for a company looking to grow.

Employee sentiment at Daktronics currently registers as neutral, suggesting a stable but not overly enthusiastic workforce.

Web traffic to Daktronics' official site is estimated at 130,000 visitors, representing a 10% decline over the past few months. This drop can indicate a decline in customer interest or acquisition efforts.

On social media, Daktronics has 5,400 followers on Instagram and 9,200 followers on Twitter, with no significant changes in recent months, highlighting a static engagement level. The lack of growth in social media presence might be a concern for brand visibility.

According to AltIndex’s AI score, which evaluates a stock based on fundamental, technical, and alternative data, Daktronics has a score of 52, signaling a hold recommendation.

Conclusion and Recommendation

Daktronics presents a mixed bag of opportunities and challenges. While the company exhibits promising growth in revenue and a positive trend in stock price, the high P/E ratio and declining net income year-over-year point towards potential risks. Technical indicators favor a bullish outlook in the short term, but alternative data signals such as a reduction in job postings and web traffic raise flags about long-term growth sustainability.

Taking into account the overall analysis, it would be prudent to maintain a cautious stance. Given the company’s current fundamentals, the stock appears to be fairly valued without strong indications for significant appreciation in the immediate future. Therefore, the current recommendation is to hold and closely monitor for changes in these key metrics before making any aggressive investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.