Dycom Industries, Inc. (DY) - Stock Analysis
Last updated: Jun 8, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Telecom/data-center infrastructure momentum: recent news cited record fiscal Q4 results, revenue above the top end of outlook, record free cash flow, completion of the Power Solutions acquisition, strong backlog, and the stock is up about 22% over 21 trading days.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Solid profitability ⢠Weak cash flow ⢠High leverage DY shows decent profitability and strong liquidity, but rising leverage, weaker latest-quarter cash generation, and a stretched valuation make the stock less attractive.
Price Behavior
Key Price Behavior Insights: ⢠Mid-May base ⢠$500 rejection ⢠Overbought reversal Support Level: $460-$465 Resistance Level: $490-$500 Over the last month, DY remains constructive and in an uptrend above its mid-May base, but the rejection from $535 and failure to hold $500 argue for caution until it reclaims $490-$500 with follow-through.
Sentiment & News
Key News Insights: ⢠Record Q1 ⢠Backlog surge ⢠Data center expansion Dycom delivered record Q1 results, raised full-year guidance, and expanded into data center infrastructure with an acquisition, though the stock showed some post-earnings volatility.
AI Summary
Dycom has evolved from a telecom-services name into a scaled infrastructure growth story with strong backlog and data-center exposure, but at current elevated multiples the stock is now a âshow-meâ case where the main risk is whether management can convert growth into durable cash flow and margins without execution slip.
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 |
|---|---|---|---|---|---|---|
| May 1 | May 8 | DY | Dycom Industries, Inc. | Telecom/data-center infrastructure momentum: recent news cited record fiscal Q4 results, revenue above the top end of outlook, record free cash flow, completion of the Power Solutions acquisition, strong backlog, and the stock is up about 22% over 21 trading days. | Closed | -1.2% |
| 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% |