Dycom Industries, Inc. (DY) - Stock Analysis
Last updated: Jan 12, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Dycom Industries offers a compelling near-term growth, with strong Q3 beat, robust backlog, guided 10â13% revenue growth, steady free cash flow, and +25% 21-day price rise. Execution risks and acquisition impact require monitoring despite positive momentum.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Rising FCF ⢠Elevated debt ⢠Receivables-heavy DY combines improving profitability and rising free cash flow with materially elevated leverage, large receivables/working-capital intensity, and significantly richer valuation multiples as of 2025-09-30.
Price Behavior
Key Price Behavior Insights: ⢠Higher highs ⢠Repeated resistance ⢠Forming support Support Level: $338â$340 Resistance Level: $354â$355 Over the last month DY climbed from about $338 to highs above $354, showing higher highs/lows with support near $338â$340 but repeated resistance at $354â$355 and short-term volatility suggesting caution until a decisive breakout.
Sentiment & News
Key News Insights: ⢠Margin expansion ⢠Strategic acquisition ⢠Premium valuation Dycom's stock has rallied on strong backlog and margin expansion plus a $1.63B Power Solutions acquisition that boosts its AI/data-center and broadband exposure despite some insider/institutional selling.
AI Summary
Dycom's shift into higher-margin data-center electrical contracting via the Power Solutions acquisition reframes it from a cyclical telecom contractor to a hybrid growth-and-margin story, but that thesis hinges on flawless integration and fast receivables conversion to justify stretched multiples. Monitor acquisition close/integration milestones, receivables turnover, and leverage reduction over the next 12 monthsâmisses on any will likely trigger a sharp re-rating.
Description
Dycom Industries is a U.S.-based specialty contractor that provides program management, engineering and field services for telecommunications and utility customers. Its work encompasses planning, design, construction, installation and maintenance of fiber, copper and coaxial systems, wireless tower and small cell infrastructure, customer premise equipment, and underground facility locating. The company was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 4 | Dec 11 | DY | Dycom Industries, Inc. | Dycom Industries offers a compelling near-term growth, with strong Q3 beat, robust backlog, guided 10â13% revenue growth, steady free cash flow, and +25% 21-day price rise. Execution risks and acquisition impact require monitoring despite positive momentum. | Closed | +2.8% |