DY

Dycom Industries (DY), a North American specialty contracting firm in the telecom industry, is highlighted as a potential growth investment. The company holds a #3 (Hold) Zacks Rank with an A VGM Score and A Growth Style Score, forecasting 43.6% year-over-year earnings growth for the current fiscal year. Five analysts revised earnings estimates upward in the last 60 days, with the consensus estimate increasing to $17.19 per share for fiscal 2027.

Dycom Industries (DY) reported 50.6% revenue growth to $3.97B in H1 fiscal 2027 with record backlog of $12.24B, driven by AI-driven digital infrastructure investments in fiber and data centers. The company raised fiscal 2027 guidance and authorized a $150M buyback, but faces headwinds from heavy telecommunications customer concentration (80% of revenues), margin pressures, tariff risks, and project timing uncertainties. Despite trading at a discount to peers with strong ROE of 25.3%, analysts maintain a cautious Hold rating citing execution risks.

Dycom Industries reported a record $12.2B backlog at the end of Q2 fiscal 2027, with $6.47B expected over the next 12 months. The company raised its fiscal 2027 revenue guidance to $7.48-$7.66B with organic growth of 10.3%-12.3%, driven by over $1B in fiber infrastructure projects and strong Building Systems demand. However, DY stock has declined 23.8% over the past six months and currently holds a Zacks Rank #3 (Hold) rating.