DAKT Stock Analysis: Buy, Sell, or Hold?

DAKT - Daktronics Inc

MISCELLANEOUS MANUFACTURING INDUSTRIES
$23.15
0.69 (3.07%) β–²
BUY
MODERATE Confidence
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Last Updated: January 30, 2026
Earnings: Mar 04, 2026

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Interactive Price Chart (1 Month)

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πŸ’‘
Bottom Line:
πŸ’‘ BUY OPPORTUNITY: DAKT shows positive signals but monitor for confirmation. Market pricing in 0.5% decline. Moderate conviction.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$34.21
Based on 8.6% avg growth
INTRINSIC VALUE TODAY
$21.24
Trading above fair value

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 18.8x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: DAKT is currently trading at $23.15, which is considered extended relative to its 30-day fair value range of $19.50 to $22.04. The stock's valuation (Forward PE: 18.6) is in line with its historical norms (18.8). Remarkably, the market is currently pricing in an annual earnings decline of 0.5% over the next few years. This pessimistic expectation contrasts with the company's recent 57.1% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, DAKT is showing sideways momentum. The price is approaching resistance at $23.20. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 3.1% recently.

Market Sentiment: DAKT has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $30.00 (+33.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position EXTENDED
Fair Price Range $19.50 - $22.04
Company Quality Score 62/100 (BUY)
Volume Confirmation HIGH
Confidence Score 69.2%

Protect Your Profits

DAKT is technically overbought (RSI 73). Consider hedging now to protect against a potential pullback while keeping your upside.

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All Signals

  • BEARISH: Price extended above range (+5.0% above fair value)
  • BULLISH: Options cheap (IV 0th percentile)
  • BULLISH: Strong technical setup (75/100)
  • BULLISH: High volume confirmation
  • BULLISH: Strong upward momentum (+3.1%)
  • BULLISH: Trading 33.6% below Wall St target ($30.00)

Fair Price Analysis

30-Day Fair Range $19.50 - $22.04
Current vs Fair Value EXTENDED
Expected Move (7 Days) Β±$1.68 (7.2%)

Support & Resistance Levels

Support Level $21.01
Resistance Level $23.20
Current Trend Sideways

Fundamental Context

Forward P/E (Next Year Est.) 18.56
Wall Street Target $30.00 (+33.6%)
Revenue Growth (YoY) 10.0%
Earnings Growth (YoY) 57.1%
Profit Margin 1.0%
Valuation Discount vs History -0.5% cheaper
PE vs Historical 18.6 vs 18.8 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -0.5% (market-implied from PE analysis)
1-Year Target $22.35 (-1%)
2-Year Target $22.24 (-1%)
3-Year Target $22.12 (-2%)
3-Yr Target (if PE normalizes) (PE: 19β†’19) $22.41 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 13.1%) $39.02 (+74%)
Base: (SPY PE: 18.6, Growth: 13.1%) $32.48 (+45%)
Bear: (PE: 15.8, Growth: 13.1%) $27.61 (+23%)
πŸ“ˆ Valuation based on Current Earnings
Forward PE: 11.96 | Forward EPS (Implied): $1.94
Bull Case $27.95 (+21%)
Analyst growth 15.0%, PE expands to 12.6
Base Case $23.15 (0%)
Market implied 0.0%, PE stable at 12.0
Bear Case $17.71 (-24%)
Severe decline -15.0%, PE contracts to 10.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
πŸ’‘ Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 18.6 to 18.8
Stabilization Target: $22.75 (+1.3%)
PE Expansion Potential: +1.3%
Last updated: January 30, 2026 7:31 PM ET
Data refreshes hourly during market hours. Next update: 8:31 PM
πŸ”₯ Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
3
Sells
Net
INSIDERS SELLING
Recent Transactions
Carla S Gatzke SELL 9944 shares 2025-09-17
John Patrick Friel SELL 13479 shares 2025-09-15
Sheila Mae Anderson SELL 3839 shares 2025-08-07

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Advanced DAKT Option Strategies

Professional options setups generated by AI based on today's DAKT price and gamma walls.

Iron Condor Bull Call Bear Put Collar

More Analysis for DAKT

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