Have you been paying attention to shares of Dycom Industries (DY)? Shares have been on the move with the stock up 9.1% over the past month. The stock hit a new 52-week high of $301.88 in the previous session. Dycom Industries has gained 69.7% since the start of the year compared to the 5.1% gain for the Zacks Construction sector and the 46% return for the Zacks Building Products - Heavy Construction industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 20, 2025, Dycom Industries reported EPS of $3.33 versus consensus estimate of $2.86 while it missed the consensus revenue estimate by 1.3%.
For the current fiscal year, Dycom Industries is expected to post earnings of $10.01 per share on $5.31 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $11.05 per share on $5.69 in revenues. This represents a year-over-year change of 10.42% and 7.28%, respectively.
Valuation Metrics
While Dycom Industries has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort 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 C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 29.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.3X. On a trailing cash flow basis, the stock currently trades at 19.6X versus its peer group's average of 16.5X. Additionally, the stock has a PEG ratio of 1.41. 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 consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Dycom Industries currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
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 meets the list of requirements. Thus, it seems as though Dycom Industries shares could have potential in the weeks and months to come.
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 MasTec, Inc. (MTZ). MTZ has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. MasTec, Inc. beat our consensus estimate by 5.67%, and for the current fiscal year, MTZ is expected to post earnings of $6.32 per share on revenue of $13.98 billion.
Shares of MasTec, Inc. have gained 2% over the past month, and currently trade at a forward P/E of 32.21X and a P/CF of 20.32X.
The Building Products - Heavy Construction industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DY and MTZ, even beyond their own solid fundamental situation.
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Dycom Industries, Inc. (DY): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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