Dycom Industries (DY) Stock Sinks As Market Gains: What You Should Know

The latest trading session saw Dycom Industries DY ending at $150.57, denoting a -0.31% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.17%. Meanwhile, the Dow experienced a rise of 0.32%, and the technology-dominated Nasdaq saw a decrease of 0.03%.

The the stock of provider of specialty contracting services has risen by 8.87% in the past month, leading the Construction sector's loss of 0.77% and the S&P 500's gain of 0.17%.

The investment community will be closely monitoring the performance of Dycom Industries in its forthcoming earnings report. The company is expected to report EPS of $1.39, down 19.65% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.09 billion, showing a 4.23% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.14 per share and revenue of $4.49 billion, indicating changes of -3.12% and +7.6%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Dycom Industries. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Right now, Dycom Industries possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Dycom Industries is currently trading at a Forward P/E ratio of 21.14. This represents a premium compared to its industry's average Forward P/E of 17.3.

Also, we should mention that DY has a PEG ratio of 1.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Building Products - Heavy Construction industry stood at 1.79 at the close of the market yesterday.

The Building Products - Heavy Construction industry is part of the Construction sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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