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Are Investors Undervaluing Dycom Industries (DY) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Dycom Industries (DY - Free Report) . DY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 19.54, which compares to its industry's average of 20.81. DY's Forward P/E has been as high as 20.75 and as low as 12.13, with a median of 16.61, all within the past year.

We also note that DY holds a PEG ratio of 0.82. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DY's PEG compares to its industry's average PEG of 1.23. Over the last 12 months, DY's PEG has been as high as 1.04 and as low as 0.69, with a median of 0.86.

Finally, investors should note that DY has a P/CF ratio of 11.01. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DY's current P/CF looks attractive when compared to its industry's average P/CF of 17.04. Over the past year, DY's P/CF has been as high as 11.04 and as low as 6.42, with a median of 8.91.

These are just a handful of the figures considered in Dycom Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DY is an impressive value stock right now.


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