A strong stock as of late has been Dycom Industries (DY). Shares have been marching higher, with the stock up 35.6% over the past month. The stock hit a new 52-week high of $566.47 in the previous session. Dycom Industries has gained 56.6% since the start of the year compared to the 13.7% gain for the Zacks Construction sector and the 44.9% return for the Zacks Building Products - Heavy Construction industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 27, 2026, Dycom Industries reported EPS of $4.42 versus consensus estimate of $2.73 while it beat the consensus revenue estimate by 13.08%.
For the current fiscal year, Dycom Industries is expected to post earnings of $13.85 per share on $7 in revenues. This represents a 15.71% change in EPS on a 26.22% change in revenues. For the next fiscal year, the company is expected to earn $16.64 per share on $7.69 in revenues. This represents a year-over-year change of 20.17% and 9.83%, respectively.
Valuation Metrics
Though Dycom Industries has recently hit a 52-week high, what is next for Dycom Industries? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Dycom Industries has a Value Score of D. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 38.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.8X. On a trailing cash flow basis, the stock currently trades at 24.5X versus its peer group's average of 18.3X. Additionally, the stock has a PEG ratio of 1.13. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Dycom Industries currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Dycom Industries fits the bill. Thus, it seems as though Dycom Industries shares could still be poised for more gains ahead.
How Does DY Stack Up to the Competition?
Shares of DY have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Orion Group Holdings, Inc. (ORN). ORN has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Orion Group Holdings, Inc. beat our consensus estimate by 200.00%, and for the current fiscal year, ORN is expected to post earnings of $0.37 per share on revenue of $943.29 million.
Shares of Orion Group Holdings, Inc. have gained 17.1% over the past month, and currently trade at a forward P/E of 37.66X and a P/CF of 15.06X.
The Building Products - Heavy Construction industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DY and ORN, even beyond their own solid fundamental situation.
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Dycom Industries, Inc. (DY): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).