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Chicago, IL – November 26, 2025 – Zacks Equity Research shares Dycom Industries, Inc. DY, as the Bull of the Day and, Chevron Corp. (CVX) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on — IonQ, Inc. IONQ and NVIDIA Corp. NVDA
Here is a synopsis of all three stocks:
Dycom Industries, Inc. is booming due to demand for telecommunication and digital infrastructure, including data centers. This Zacks Rank #1 (Strong Buy) recently raised its full-year revenue outlook.
Dycom Industries is a provider of specialty contracting services to telecommunications infrastructure and utility industries throughout the United States. It does planning, engineering and design, maintenance and fulfillment services for telecommunication providers.
It also provides underground facility locating services for various utilities, as well as others construction and maintenance services for electric and gas utilities.
On Nov 19, 2025, Dycom reported its Fiscal 2026 third quarter results and beat on the Zacks Consensus Estimate for the 7th quarter in a row. Earnings were a record $3.63 compared to the Zacks Consensus Estimate of $3.15. That’s a beat of $0.48.
The company beat even its own third quarter guidance, which had been $3.03 to $3.36.
Dycom has only missed one time since 2021 and that was in early 2024.
It was a record quarter in many areas.
Dycom saw record contract revenue, up 14.1%, to $1.45 billion from $1.27 billion last year. On an organic basis, contract revenue rose 7.2%, excluding contract revenue from acquired companies that were not owned for the entirety of both the current and prior year quarters.
“The demand drivers for telecommunications and digital infrastructure have never been stronger, fueled by accelerating fiber builds, a massive ramp-up in data center needs, and the much-anticipated arrival of BEAD,” said Dan Peyovich, Dycom’s President and CEO.
It had strong operating cash flows of $220 million.
As of Oct 25, 2025, Dycom had a record backlog of $8.2 billion, up from $8 billion as of July 26, 2025.
Dycom is bullish on the rest of the year given its record third quarter. It increased the midpoint of its revenue outlook for the year. Contract revenues are now expected to be in the range of $5.35 billion to $5.425 billion, representing a range of 13.8% to 15.4% total growth over last year.
It also gave fourth quarter earnings guidance of a range of $1.62 to $1.97, which was higher than the Zacks Consensus of $1.34.
As a result, the analysts have raised both the fourth quarter and full year fiscal 2026 and 2027 earnings estimates.
3 estimates were raised for fiscal 2026 in the last week. It has pushed the Zacks Consensus to $10.48 from $10.01 in that period. That’s earnings growth of 14.5%.
1 estimate was also raised for fiscal 2027 in the last week as well. The Fiscal 2027 Zacks Consensus is now looking for $12.78, up from $10.62. That’s earnings growth of 22%.
Dycom shares have soared this year to a new all-time high. They are easily outperforming the S&P 500.
The shares aren’t cheap with a forward price-to-earnings (P/E) ratio of 32.5.
But with double digit growth, Dycom has a PEG ratio of just 1.78. A PEG under 1.0 means a company has both value and growth but 1.78 is also low.
It also has a price-to-sales (P/S) ratio of just 1.9. A P/S ratio under 1.0 means a company is undervalued, but 1.9 is also cheap, especially compared to the technology companies involved in the AI revolution which are trading with P/S ratios above 10. A ratio above 10 is considered to be expensive.
For investors looking for an AI Revolution play that is involved with the AI infrastructure, Dycom Industries should be on your short list.
Chevron Corp. is waiting for a turnaround in oil prices. This Zacks Rank #5 (Strong Sell) is expected to see declining earnings for the second year in a row in 2025.
Chevron is one of the world’s largest integrated energy companies. It produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies to enhance the business.
On Oct 31, 2025, Chevron reported its third quarter 2025 results. It beat on the Zacks Consensus by $0.19, reporting $1.85 versus the consensus of $1.66. It was the third beat in a row.
Chevron saw record production of 4.1 million BOE per day which was 21% higher than a year ago.
On Nov 12, 2025, Chevron hosted an Investor Day to outline its five-year plan to 2030 on issues like cash flow growth, advance power solutions for AI data centers and how it will grow shareholder distributions.
Chevron expects to maintain a capex and dividend breakeven below $50 Brent per barrel through 2030.
The company recently acquired Hess. It intends to increase Hess synergies to $1.5 billion and structural cost reductions to $3 billion to $4 billion by the end of 2026.
It intends to grow oil and gas production 2% to 3% annually through 2030.
Chevron will also deliver its first AI data center power project in West Texas, targeting first power in 2027.
It’s been a two-year struggle for Chevron as oil prices have fallen to under $70 a barrel for Brent and under $60 a barrel for WTI.
Chevron’s earnings fell 23.8% in 2024 and are expected to fall 27.2% in 2025.
However, in 2026, the analysts believe the worst will be over as they see a rebound of 10.2%.
The Zacks Rank is based on changes to analyst earnings estimates. For 2025, 7 estimates have been cut in the last 60 days. It has pushed the Zacks Consensus down to $7.32 from $7.91.
Similarly, for 2026, 7 analysts have cut estimates in the last 60 days as well. It has pushed down the Zacks Consensus to $8.07 from $9.52.
However, in the last month, some analysts have adjusted estimates again with 4 higher for 2025 and 1 higher for 2026. But it’s not enough to counter the bearish take over the prior 2 months.
Chevron is underperforming the S&P 500 this year, but it remains in a narrow trading range for the last 3 years.
Due to falling earnings, Chevron isn’t cheap. It trades with a forward price-to-earnings (P/E) ratio of 20.5.
But Chevron is dedicated to its shareholders. It’s paying a dividend of $6.84 per share, which is yielding an attractive 4.6%.
Chevron’s earnings are determined by commodity prices. It is a cyclical stock. When oil prices rise again, so will Chevron’s earnings. In the meantime, investors will be rewarded with a hefty dividend.
IonQ, Inc. is making significant strides in quantum computing, potentially mirroring how NVIDIA Corp. made the most of the artificial intelligence (AI) boom. However, the company is still unprofitable. So, can it really become the “next NVIDIA” and is it worth buying now? Let’s see –
IonQ's groundbreaking achievements in quantum computing and strategic alliances have solidified its leadership in the industry. Recently, IonQ achieved a record of #AQ 64 in algorithmic qubit performance and a 99.99% two-qubit gate fidelity. IonQ has become the first quantum company to reach the ‘four-nines’ threshold, indicating reduced error rates and the ability to execute complex algorithms seamlessly.
The acquisitions of Vector Atomic and Oxford Ionics have strengthened IonQ's full-stack quantum platform, while its partnership with the U.S. Department of Energy highlights its pivotal role in quantum ground-to-orbit-to-ground capabilities. In the last quarter, IonQ's revenues were impressive, driven by growing demand for its advanced quantum technologies. For the third quarter, revenues reached $39.9 million, a 222% increase year over year, and the company raised its 2025 sales guidance to $110 million, as announced in its earnings report.
IonQ's strong revenue growth, optimistic outlook, quantum milestones, and significant partnerships suggest that the pure-play quantum company could emerge as the “next NVIDIA” of the quantum era. IonQ is developing error-correcting software, satellite-based distribution and high-speed quantum networking, building an end-to-end ecosystem for quantum computing.
However, it is premature to consider IonQ the “next NVIDIA." The company is not yet profitable. In the third quarter, IonQ reported a net loss of $1.1 billion, with adjusted earnings per share of -$0.17. In contrast, NVIDIA has consistently posted quarterly profits, fueled by the AI boom. In the fiscal fourth quarter of 2026, NVIDIA's net income surged to $31.91 billion from $19.31 billion a year earlier, driven by unprecedented demand for its Blackwell chips and cloud graphics processing units (read more: 3 Reasons to Buy NVIDIA After Its Massive 62% Revenue Surge).
Robust revenue growth, strategic acquisitions, and key quantum achievements may encourage existing shareholders to hold onto their IonQ stock. Nonetheless, for new investors, IonQ remains a highly speculative investment because the quantum computing industry is still in its early, developing stages.
From a valuation standpoint, IonQ appears overvalued, and its stock could drop sharply if the broader market corrects. Its forward price-to-sales (P/S) ratio is a striking 150.36 compared to the Computer - Integrated Systems industry's 5.54. Therefore, it would be wise for new investors to avoid purchasing IonQ stock for now.
IonQ stock has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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