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Dycom Industries (DY - Free Report) is a Zacks Rank #1 (Strong Buy) and sports a D for Value and a D for Growth. This company is in the telecom equipment space and just posted a solid quarter. Let’s explore more about this company in this Bull of The Day article.
Description
Dycom Industries, Inc. The company offers program management and engineering services; plans and designs aerial, underground, and buried fiber optic, copper, and coaxial cable systems; and construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers. Dycom Industries, Inc. was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For DY, I see four straight beats of the Zacks Consensus Estimate. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 140%.
Most Recent Quarter
The most recent quarter saw EPS come in at $1.46 and that was $0.47 more than the Zacks Consensus Estimate of $0.99. That translates in to a 47% positive earnings surprise.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For DY, I see annual estimates moving higher.
Over the last 30 days, I see a few increases.
The full fiscal year 2022 has moved from $3.29 to $3.56.
Next fiscal year has also increased from $4.99 to $5.25.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for a little high, but the consistency of beating the number justifies some of the premium. DY carries a 32x forward earnings multiple. The company sports a 4x price to book multiple which is not a huge stretch given the growth. The company posted year over year sales of more than 23% in the most recent quarter.
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Bull Of The Day: Dycom Industries (DY)
Dycom Industries (DY - Free Report) is a Zacks Rank #1 (Strong Buy) and sports a D for Value and a D for Growth. This company is in the telecom equipment space and just posted a solid quarter. Let’s explore more about this company in this Bull of The Day article.
Description
Dycom Industries, Inc. The company offers program management and engineering services; plans and designs aerial, underground, and buried fiber optic, copper, and coaxial cable systems; and construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers. Dycom Industries, Inc. was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For DY, I see four straight beats of the Zacks Consensus Estimate. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 140%.
Most Recent Quarter
The most recent quarter saw EPS come in at $1.46 and that was $0.47 more than the Zacks Consensus Estimate of $0.99. That translates in to a 47% positive earnings surprise.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For DY, I see annual estimates moving higher.
Over the last 30 days, I see a few increases.
The full fiscal year 2022 has moved from $3.29 to $3.56.
Next fiscal year has also increased from $4.99 to $5.25.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for a little high, but the consistency of beating the number justifies some of the premium. DY carries a 32x forward earnings multiple. The company sports a 4x price to book multiple which is not a huge stretch given the growth. The company posted year over year sales of more than 23% in the most recent quarter.