Dycom Industries, Inc. (DY) - Stock Analysis
Last updated: Mar 8, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Robust backlog ($8.1B) and diversified contract wins in fiber and telecom infrastructure; solid revenue and EBITDA growth with improved margins and strong technical momentum (+8% ROC over 21 days); attractive for investors seeking exposure to digital infrastructure growth with upcoming catalysts.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Improved margins ⢠Strong liquidity ⢠High leverage DY shows materially improved margins and free cash flow with strong liquidity but is constrained by elevated leverage, large receivables and a materially richer valuation as of 2025-09-30.
Price Behavior
Key Price Behavior Insights: ⢠Downward momentum ⢠At last-month low ⢠Resistance 420â430 Support Level: $357.07 Resistance Level: $420â$430 DY shows clear downward momentum: over the last month the simple average was about $410 while the 2026-03-06 close at $357.07â~13% below that averageâand the stock plunged from $418.73 on 2026-03-02 to $357.07 (~â14.7%), now at last month's low with $420â$430 as nearby resistance.
Sentiment & News
Key News Insights: ⢠Record Q4 results ⢠Data-center entry ⢠Analyst support Dycom beat Q4 expectations with record revenue and free cash flow, citing operational execution and the Power Solutions acquisition to accelerate data-center entry while guiding for continued organic contract growth and margin expansion amid mixed investor reactions.
AI Summary
Dycom's Power Solutions acquisition meaningfully reframes the company toward higherâmargin dataâcenter services and could validate the richer multiple, but that upside is conditionalâmonitor AR days, quarterly FCF conversion, and clear integration milestones because failure to reduce receivables or botch integration will quickly reverse the thesis.
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 |
|---|---|---|---|---|---|---|
| Jan 22 | Jan 29 | DY | Dycom Industries, Inc. | Robust backlog ($8.1B) and diversified contract wins in fiber and telecom infrastructure; solid revenue and EBITDA growth with improved margins and strong technical momentum (+8% ROC over 21 days); attractive for investors seeking exposure to digital infrastructure growth with upcoming catalysts. | Closed | -3.6% |
| 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% |