Should you consider DAKTRONICS INC (NASDAQ:DAKT) for growth investing?

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if DAKTRONICS INC (NASDAQ:DAKT) is suited for growth investing. Investors should of course do their own research, but we spotted DAKTRONICS INC showing up in our CANSLIM growth screen, so it may be worth spending some more time on it.

Some of the canslim metrics of NASDAQ:DAKT highlighted

• The earnings per share (EPS) of DAKTRONICS INC have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 575.0% increase. This reflects the company's ability to improve its profitability over time.
• DAKTRONICS INC has demonstrated strong q2q revenue growth of 35.26%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• DAKTRONICS INC has achieved 34.71% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• DAKTRONICS INC has achieved an impressive Return on Equity (ROE) of 14.17%, showcasing its ability to generate favorable returns for shareholders.
• DAKTRONICS INC has exhibited strong Relative Strength(RS) in recent periods, with a current 99.26 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. DAKTRONICS INC shows promising potential for continued price momentum.
• DAKTRONICS INC maintains a healthy Debt-to-Equity ratio of 0.19. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• With 46.97% of the total shares held by institutional investors, DAKTRONICS INC showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.

Insights from Technical Analysis

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall DAKT gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, DAKT is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that DAKT is one of the better performing stocks in the market, outperforming 99% of all stocks. We also observe that the gains produced by DAKT over the past year are nicely spread over this period.
• DAKT is one of the better performing stocks in the Electronic Equipment, Instruments & Components industry, it outperforms 98% of 127 stocks in the same industry.
• DAKT is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so DAKT is performing more or less in line with the market.
• In the last month DAKT has a been trading in the 7.98 - 10.27 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

Our latest full technical report of DAKT contains the most current technical analsysis.

A complete fundamental analysis of NASDAQ:DAKT

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall DAKT gets a fundamental rating of 6 out of 10. We evaluated DAKT against 127 industry peers in the Electronic Equipment, Instruments & Components industry. DAKT has only an average score on both its financial health and profitability. DAKT is evaluated to be cheap and growing strongly. This does not happen too often! This makes DAKT very considerable for value and growth investing!

For an up to date full fundamental analysis you can check the fundamental report of DAKT

More ideas for growth investing can be found on ChartMill in our CANSLIM screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.