Four consecutive earnings beats averaging 26% upside surprise and industry-leading revenue growth of 56% year over year support a constructive thesis; the primary restraints are leverage near 1.6x debt-to-equity and an asymmetry ratio that has not yet cleared the stricter threshold at the current price.
Thesis pillars
- Leverage Limits Financial Flexibility↓Deteriorating
- Exceptional Earnings Beat Streak→Stable
- Industry Leading Revenue Growth→Stable
- +1 more pillar — see the Why tab for full reasoning
Dycom Industries, Inc. (DY) Stock Analysis
Range Bound setup
Industrials · Engineering & Construction
Hold if already holding. Not a fresh buy at $429.81, but acceptable to hold if already in. Reason: Leverage penalty (D/E 1.6): -1.0.
Dycom Industries provides specialty contracting services — including fiber placement, wireless construction, and underground facility locating — for telecommunications providers and utilities across all 50 U.S. states, operating through 38 subsidiaries with approximately 19,556... Read more
Hold if already holding. Not a fresh buy at $429.81, but acceptable to hold if already in. Reason: Leverage penalty (D/E 1.6): -1.0. Chart setup: RSI 50 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Score 6.7/10, moderate confidence.
Passes 7/8 gates (positive momentum, favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 30d clear, semi cycle peak clear, materials cycle peak clear). Suitability: aggressive.
About Dycom Industries, Inc.
About Dycom Industries, Inc.
Dycom Industries carried total backlog of $9.542 billion at January 31, 2026 — $8.334 billion in Communications and $1.208 billion in the newly formed Building Systems segment — up from $7.760 billion a year earlier, employing approximately 19,556 people across all 50 U.S. states. In fiscal 2026, AT&T Inc. represented 25.4% of total contract revenues, Verizon Communications 14.0%, and Lumen Technologies 10.8%, together accounting for more than half of revenues.
Dycom generates revenue under master service agreements with discrete per-task pricing, covering aerial, underground, and wireless construction; fiber, copper, and coaxial cable placement and splicing; underground facility locating; and engineering and permitting services for telecommunications providers and utilities. The Building Systems segment — added via the Power Solutions acquisition in the fourth quarter of fiscal 2026 — provides electrical, energy management, security, and fire safety systems for data centers and other critical facilities. For the majority of Communications segment work, customers supply the required materials, limiting input-cost risk; under contracts where Dycom supplies materials, the company does not depend on any one source. The 12-month portion of total backlog stood at $6.358 billion as of January 31, 2026, providing near-term revenue visibility. Fuel price fluctuations may weigh on margins under fixed-task contracts that do not permit mid-term pricing adjustments.
Show full overview
Dycom's customer concentration is structural to its business model: AT&T, Verizon, and Lumen together accounted for more than 50% of fiscal 2026 contract revenues under master service agreements cancellable with little or no advance notice. Ongoing consolidation reshapes this customer map: Verizon absorbed Frontier Communications on January 20, 2026, and AT&T completed its acquisition of Lumen's mass markets fiber business on February 2, 2026. If a surviving entity after a merger chooses a competitor, Dycom's revenues and backlog could be impaired without a contractual remedy.
See also: Industrials · Engineering & Construction
From Dycom Industries, Inc.'s most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-07-27Recent Developments — Dycom Industries, Inc.
Latest news
- NEWS DY stock surges over 30% on earnings beat and higher outlook - MSN — MSN positive
- NEWS DY Stock Rockets On Heavy Volume As Trend Strengthens - StocksToTrade — StocksToTrade positive
- NEWS Why Is Dycom Stock Skyrocketing Wednesday? - Dycom Industries (NYSE:DY) - Benzinga — Benzinga positive
- NEWS Why DY Stock Has Surged Over 30% Today - Stocktwits — Stocktwits positive
- NEWS Dycom (DY) Sees Significant Stock Price Surge - GuruFocus — GuruFocus positive
Generated 2026-07-27T12:57:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerAT&T Inc.25%10-K Item 1: 'we derived approximately 25.4% of our total contract revenues from AT&T Inc.'
- LOWCustomerVerizon Communications, Inc.14%10-K Item 1: '14.0% from Verizon Communications, Inc.'
- LOWCustomerLumen Technologies Inc.11%10-K Item 1: '10.8% from Lumen Technologies Inc.'
Material Events(8-K, last 90d)
- 2026-06-01Item 5.02LOWDirectors Laurie J. Thomsen (mandatory retirement per Board Tenure policy) and Luis Avila-Marco (chose not to stand for reelection, notified Board Dec 18, 2025) retired at conclusion of 2026 Annual Meeting (May 28, 2026). Board reduced from 11 to 9. No disagreement cited.SEC filing →
- 2026-03-24Item 5.02LOWRaejeanne Skillern appointed to Board effective March 24, 2026, as an independent director for term expiring at the 2026 Annual Meeting. No disagreement or arrangement cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 ceiling hit
Price Targets
Position Sizing
Analyst Consensus
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $429.81, but acceptable to hold if already in. Reason: Leverage penalty (D/E 1.6): -1.0. Chart setup: RSI 50 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Target $554.43 (+29.0%), stop $399.72 (−7.5%), A.R:R 3.6:1. Score 6.7/10, moderate confidence.
Take-profit target: $554.43 (+29.0% upside). Target $554.43 (+29.0%), stop $399.72 (−7.5%), A.R:R 3.6:1. Stop-loss: $399.72.
Leverage penalty (D/E 1.6): -1.0.
Dycom Industries, Inc. trades at a P/E of 41.0 (forward 21.5). TrendMatrix value score: 6.7/10. Verdict: Hold.
20 analysts cover DY with a consensus score of 4.3/5. Average price target: $637.
What does Dycom Industries, Inc. do?Dycom Industries provides specialty contracting services — including fiber placement, wireless construction, and...
Dycom Industries provides specialty contracting services — including fiber placement, wireless construction, and underground facility locating — for telecommunications providers and utilities across all 50 U.S. states, operating through 38 subsidiaries with approximately 19,556 employees. Revenue is generated under master service agreements and project-specific contracts, with AT&T (25.4%), Verizon (14.0%), and Lumen Technologies (10.8%) together accounting for more than half of fiscal 2026 contract revenues. The company added a Building Systems segment in fiscal 2026 via the Power Solutions a