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Steven Dyer, an analyst with Craig-Hallum Capital Group, has totaled it up. Between new stadiums and upgrades, he sees 112 projects happening in the next three years. Consider that the Kauffman Stadium deal alone was worth $10 million to Daktronics, and business looks bright. Both the New York Yankees and the New York Mets are erecting new stadiums and those deals are expected to fetch $20 million each. Meanwhile, the Arizona Diamondbacks intend to have a new board worth $10 million to $12 million by opening day 2008.

Longer term, the sports side of the business isn't even the exciting high-growth part of the story. "Billboards are kind of the sexy part of the stock," says Dyer, who rates shares at Strong Buy. (Analysts' average call sits between Buy and Hold, according to Thomson Financial.) "They've grown their digital billboard business 100% for two consecutive years. There's almost half a million billboards in the country and only 600 or 700 thus far have been converted to digital."

Lamar Advertising (LAMR: 53.83, +0.68, +1.27%) and Clear Channel Outdoor (CCO: 24.00, -0.59, -2.39%) control roughly 300,000 of the nation's billboards. Alpert believes Daktronics now has as much as three-quarters of the Lamar business and perhaps 70% at Clear Channel.

Needham analyst James Ricchiuti, who rates shares a Buy, regards the company as one of the strongest organic growth stories he covers. "We expect bookings to remain strong over the next several quarters in Daktronics' core sports market and commercial business, notably digital billboards," the analyst wrote last month.
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