Back to top

Aggressive Growth

Dycom Industries (DY - Analyst Report) analysts are expecting excellent growth over the next 2 years, in light of the last earnings report. While it has been a bumpy road, the earnings expectations haven't been this high in years for this Zacks #1 Rank (Strong Buy).

Company Description

Dycom Industries offers specialty contracting services including engineering, construction, and maintenance for the telecom, electric, and gas utilities.

Back-to-Back Surprises

On Aug 23 Dycom reported its fourth-quarter and full-year results. Earnings for the quarter came in above expectations at $0.38 per share, beating the Zacks Consensus by 14 cents. The company doubled the consensus last quarter with EPS of $0.10.

Organic contract revenue grew 11%, to $304 million during the quarter and eclipsed $1 billion on the year, which was a 4% gain.

Estimates Move Higher

Analysts upped their expectations for fiscal 2012 after the 2011 results were out, sending the Zacks Consensus Estimate 18 cents higher, to $0.92. Next year's average forecast rose 5 cents, to $1.27.

Last year Dycom made $0.61 per share, so projected growth rates now stand at 51% and 39%, respectively.

Valuations

You will have to open up the purse strings a bit to get into DY at this point. The forward P/E is at 19 times and the PEG is 1.6. However, many investors look to P/S for small caps and DY's is at 0.5 times, not a bad deal there. Additionally, shares are going for 1.6 times book value.

The Chart

Shares have been volatile, along with the market. But you can see below that earnings forecasts are at the highest levels in years. If you can stomach the volatility, there could be some nice gains in DY.

Dycom Industries  - ticker DY>
 
 
<P ALIGN=

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
CLAYTON WIL… CWEI 117.30 +1.78%