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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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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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 (contributing 89.6% to fiscal 2024 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 (7.1%): 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 (3.3%): 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.
A $1000 investment made in May 2014 would be worth $4,718.53, or a gain of 371.85%, as of May 10, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 177.57% and gold's return of 74.82% over the same time frame.
Analysts are anticipating more upside for DY.
Dycom's shares have outperformed its industry in the six-months period. Dycom is seeing significant opportunities, as some major industry participants are deploying wireline networks to offer bandwidth-enabling 1-gigabit speeds using 5G technologies. Also, it has been benefiting from continuous contract flow despite prevailing market uncertainties. Dycom’s backlog at fiscal 2024-end totaled $6.917 billion, up from $6.141 billion in the fiscal 2023 and sequentially from $6.613 billion. Although lower contributions from its top five customers have put pressure on the top line, demand increased for all other customers, up 17.8% organically in fourth-quarter fiscal 2024. That said, cyclical nature of business and currency exchange rates can impact the business in future.
Over the past four weeks, shares have rallied 8.87%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. 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
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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 (contributing 89.6% to fiscal 2024 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 (7.1%): 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 (3.3%): 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.
A $1000 investment made in May 2014 would be worth $4,718.53, or a gain of 371.85%, as of May 10, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 177.57% and gold's return of 74.82% over the same time frame.
Analysts are anticipating more upside for DY.
Dycom's shares have outperformed its industry in the six-months period. Dycom is seeing significant opportunities, as some major industry participants are deploying wireline networks to offer bandwidth-enabling 1-gigabit speeds using 5G technologies. Also, it has been benefiting from continuous contract flow despite prevailing market uncertainties. Dycom’s backlog at fiscal 2024-end totaled $6.917 billion, up from $6.141 billion in the fiscal 2023 and sequentially from $6.613 billion. Although lower contributions from its top five customers have put pressure on the top line, demand increased for all other customers, up 17.8% organically in fourth-quarter fiscal 2024. That said, cyclical nature of business and currency exchange rates can impact the business in future.
Over the past four weeks, shares have rallied 8.87%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.