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If You Invested $1000 in Dycom Industries 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Dycom Industries (DY - Free Report) ten years ago? It may not have been easy to hold on to DY for all that time, but if you did, how much would your investment be worth today?
Dycom Industries' Business In-Depth
With that in mind, let's take a look at Dycom Industries' main business drivers.
Based in North America, Dycom Industries Inc. is a specialty contracting firm operating in the telecom industry. The company provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies. Dycom provides specialty constructing services to the following customers:
Telecommunications (accounting for 88.7% of fiscal 2022 contract revenues): Dycom provides integrated services for designing aerial, underground and buried fiber optic, copper, and coaxial cable systems for telecom, cable and multiple system operators. It also equips telecom providers with engineering services for designing concept boxes and terminals for various activities. For the wireless network, the company’s service package comprises tower construction, installation of lines and antenna, constructing foundation and equipment pad, fabrication for required equipment and materials as well as testing services at the site.
Underground Facility Locating (8.2%): The company provides underground facility-locating services to a number of utility companies to avoid damage of the underground facilities like telephone, cable television, power, water, sewer and gas lines. Dycom’s expertise in these not only minimizes the damage but also controls its impact on people in the surrounding areas.
Electric and Gas Utilities (3.1%): Dycom also offers services to electric and gas utility companies for both construction and maintenance of gas pipelines and power distribution network. These services are generally provided on a stand-alone basis. However, at times the company is required to provide comprehensive services for deploying both telecom and electric infrastructure at new constructions. Dycom is also adept in installation and maintenance of natural gas transmission networks.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Dycom Industries, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in December 2012 would be worth $4,770.99, or a gain of 377.10%, as of December 27, 2022, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 170.79% and gold's return of 3.79% over the same time frame.
Going forward, analysts are expecting more upside for DY.
Dycom reported strong results in third-quarter fiscal 2023, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year. It has benefited from higher demand, an extended geographic reach and proficient program management and network planning services. Contract revenues gained 22.1%, and the top five customers combined produced 66.5% of revenue, increasing 27.4% organically. Notably, this quarter marked the second quarter since April 2017, where its top five customers have grown organically more than 25% and 15th consecutive quarter where all of other customers in aggregate grew organically. DY has been extending its geographic reach, and program management and network planning services. Dycom’s shares have outperformed the industry YTD. Yet, higher fuel costs and supply-chain woes are concerns.
The stock has jumped 5.14% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2023; the consensus estimate has moved up as well.
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If You Invested $1000 in Dycom Industries 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Dycom Industries (DY - Free Report) ten years ago? It may not have been easy to hold on to DY for all that time, but if you did, how much would your investment be worth today?
Dycom Industries' Business In-Depth
With that in mind, let's take a look at Dycom Industries' main business drivers.
Based in North America, Dycom Industries Inc. is a specialty contracting firm operating in the telecom industry. The company provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies. Dycom provides specialty constructing services to the following customers:
Telecommunications (accounting for 88.7% of fiscal 2022 contract revenues): Dycom provides integrated services for designing aerial, underground and buried fiber optic, copper, and coaxial cable systems for telecom, cable and multiple system operators. It also equips telecom providers with engineering services for designing concept boxes and terminals for various activities. For the wireless network, the company’s service package comprises tower construction, installation of lines and antenna, constructing foundation and equipment pad, fabrication for required equipment and materials as well as testing services at the site.
Underground Facility Locating (8.2%): The company provides underground facility-locating services to a number of utility companies to avoid damage of the underground facilities like telephone, cable television, power, water, sewer and gas lines. Dycom’s expertise in these not only minimizes the damage but also controls its impact on people in the surrounding areas.
Electric and Gas Utilities (3.1%): Dycom also offers services to electric and gas utility companies for both construction and maintenance of gas pipelines and power distribution network. These services are generally provided on a stand-alone basis. However, at times the company is required to provide comprehensive services for deploying both telecom and electric infrastructure at new constructions. Dycom is also adept in installation and maintenance of natural gas transmission networks.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Dycom Industries, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in December 2012 would be worth $4,770.99, or a gain of 377.10%, as of December 27, 2022, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 170.79% and gold's return of 3.79% over the same time frame.
Going forward, analysts are expecting more upside for DY.
Dycom reported strong results in third-quarter fiscal 2023, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year. It has benefited from higher demand, an extended geographic reach and proficient program management and network planning services. Contract revenues gained 22.1%, and the top five customers combined produced 66.5% of revenue, increasing 27.4% organically. Notably, this quarter marked the second quarter since April 2017, where its top five customers have grown organically more than 25% and 15th consecutive quarter where all of other customers in aggregate grew organically. DY has been extending its geographic reach, and program management and network planning services. Dycom’s shares have outperformed the industry YTD. Yet, higher fuel costs and supply-chain woes are concerns.
The stock has jumped 5.14% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2023; the consensus estimate has moved up as well.