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If You Invested $1000 in Dycom Industries a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and 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 89.7% of fiscal 2023 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 (7.2%): 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 January 2014 would be worth $4,198.83, or a 319.88% gain, as of January 1, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 159.03% and gold's return of 64.63% over the same time frame.

Going forward, analysts are expecting more upside for DY.

Shares of Dycom have outperformed its industry in the past six months. The trend is expected to continues in 2024, backed by a boost in demand from four of Dycom’s top five customers on the back of the deployment of gigabit wireline networks, wireless/wireline converged networks and wireless networks. Given the flow of new awards from its customers, the company’s backlog grew 6.5% sequentially and 8.1% year over year to $6.613 billion in third-quarter fiscal 2024. Moreover, it expects contract revenues to be in line in fiscal fourth quarter. DY also expects $50 million of acquired contract revenues for the said quarter. However, the ongoing macroeconomic uncertainties and energy price fluctuations are risks. Earnings estimates for fiscal fourth-quarter have declined in the past 30 days, depicting analyst's concern.

Over the past four weeks, shares have rallied 8.45%, and there have been 5 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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