Dycom Industries, Inc. DY

Zacks Investment Research 13 nov

Dycom Industries (DY), a North American specialty contracting firm in the telecom industry, receives a #3 (Hold) rating from Zacks with a VGM Score of A. The company shows strong growth potential with a Growth Style Score of A and forecasted year-over-year earnings growth of 42.2% for the current fiscal year. Two analysts recently revised earnings estimates upward, with the Zacks Consensus Estimate increasing to $17.02 per share, and the company has demonstrated an average earnings surprise of +24.5%.

Zacks Investment Research 12 nov

Dycom Industries (DY) is capitalizing on AI workloads, cloud migration, and data center expansion, with its Building Systems segment generating $397.5 million in revenues and a 24.5% EBITDA margin. The company acquired National Technology Integrators to expand capabilities and raised its fiscal 2027 outlook with record backlog. However, community opposition, data center moratoriums, and permitting challenges pose execution risks. DY stock has declined 48.8% over six months and trades at a discount valuation.

Zacks Investment Research 10 nov

MasTec (MTZ) reported a record 18-month backlog of $24.5 billion, up 46% year-over-year, driven by strong growth in Power Delivery (65% revenue growth, 132% EBITDA growth) and Clean Energy segments. However, 34% of backlog lacks minimum purchase commitments and is cancellable on short notice. The company faces near-term headwinds from Communications segment weakness and pipeline permitting delays. MTZ stock has underperformed its industry and trades at a premium valuation despite declining EPS estimates over the past 60 days.

Zacks Investment Research 5 nov

Dycom Industries is diversifying beyond fiber infrastructure through strategic acquisitions of Power Solutions and National Technology Integrators (NTI), expanding into data center electrical systems and structured cabling. The Building Systems segment generated $397.5M in Q2 revenues with a 24.5% adjusted EBITDA margin, and management raised FY27 revenue guidance to $1.58-$1.65B. However, the company faces integration challenges and elevated debt levels at $2.50B. Competitors MasTec and Quanta Services are pursuing similar expansion strategies in data center and infrastructure markets.

Zacks Investment Research 5 nov

Dycom Industries' Communications segment achieved 16.7% organic revenue growth to $1.61 billion driven by fiber-to-the-home demand, but adjusted EBITDA margins declined 134 basis points to 13.6% due to higher fuel prices, workforce investments, and delayed wireless projects. The company expects continued margin pressure in fiscal 2027 as it scales operations and invests in capacity.