Daktronics's average rating is Strong Buy from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Daktronics market sentiment investors' perception of the future value of Daktronics. Let us look at a few aspects of Daktronics technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Daktronics. In general, sophisticated investors focus on analyzing Daktronics stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Daktronics's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of Daktronics's intrinsic value. In addition to deriving basic predictive indicators for Daktronics, many experienced traders also check how macroeconomic factors affect Daktronics price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Daktronics' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Daktronics. Your research has to be compared to or analyzed against Daktronics' peers to derive any actionable benefits. When done correctly, Daktronics' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Daktronics.
How important is Daktronics's Liquidity
Daktronics
financial leverage refers to using borrowed capital as a funding source to finance Daktronics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Daktronics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Daktronics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Daktronics' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Daktronics's total debt and its cash.
Closer look at Daktronics Semi Deviation
Daktronics has current Semi Deviation of 2.11. Semi-deviation provides a good measure of downside risk for a equity or a portfolio. It is similar to standard deviation, but it only looks at periods where the returns are less than the target or average level.
Semi-deviation is the square root of semi-variance. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Deviation | = | SQRT(SV) |
| = | 2.11 |
Let's now compare Daktronics Semi Deviation to its closest peers:
| DAKT | 2.1148681253280834 |
| CAJ | 1.18 |
| DDD | 5.44 |
| HPQ | 2.59 |
| HAUP | 8.88 |
Will Daktronics growth be real after the gain?
Daktronics sortino ratio is up to 0.0. Daktronics currently demonstrates below-average downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of 0.13. However, we advise investors to further question Daktronics expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Daktronics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Daktronics' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Take On Daktronics
Whereas other companies within the computer hardware industry are still a little expensive, even after the recent corrections, Daktronics may offer a potential longer-term growth to private investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of Daktronics at this time. The Daktronics risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Daktronics.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Daktronics. Please refer to our
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