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EMCOR vs. Dycom: Which Infrastructure Stock Is the Better Buy Now?
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Key Takeaways
EMCOR's RPOs rose 44% as data center and communications demand drove strong bookings.
Dycom posted record revenues and backlog, prompting a higher fiscal 2027 revenue outlook.
EMCOR trades at a higher forward P/E, while Dycom's earnings estimates have moved higher.
The growing demand for data centers, digital infrastructure and critical facilities is creating a favorable backdrop for contractors supporting increasingly complex construction and connectivity needs. Against this backdrop, EMCOR Group, Inc. (EME - Free Report) and Dycom Industries, Inc. (DY - Free Report) are positioned to benefit from sustained investment in critical infrastructure and digital transformation. Customers are expanding data center capacity, AI infrastructure, communications networks and other mission-critical facilities, while relying on contractors with the skilled workforce, technical expertise and operational capabilities to execute complex projects safely and reliably.
EMCOR is benefiting from expanding opportunities across electrical and mechanical construction, particularly in data centers, network and communications, high-tech manufacturing and other complex facilities. Dycom, meanwhile, is seeing strong demand across fiber-to-the-home, long-haul and middle-mile fiber, data center interconnects, structured cabling and Building Systems. Both companies emphasize customer relationships, operational focus, workforce development and reliable execution as they support customers’ evolving infrastructure requirements.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for EME Stock
This Connecticut-based infrastructure service provider continues to benefit from broad demand across construction and building services markets. In the second quarter of 2026, EMCOR’s Electrical Construction revenues increased 24% year over year, while Mechanical Construction revenues rose more than 31%. Strong activity in data centers, network and communications, institutional, manufacturing and industrial, and warehousing and distribution is supporting growth as customers invest in mission-critical projects. The company is leveraging its prefabrication capabilities, Virtual Design and Construction (“VDC”), disciplined labor management and advanced project planning to execute complex projects safely and efficiently.
EMCOR’s growth visibility is also being strengthened by its record Remaining Performance Obligations (RPOs). At the end of the second quarter, RPOs reached $17.14 billion, up 44% year over year, with strong bookings across network and communications, water and wastewater, health care and institutional markets. Demand in network and communications, led by data centers, remains exceptionally strong as customers invest in AI infrastructure and digital transformation. The company is also deepening customer relationships as clients expand across geographies, facilities, trades and technical disciplines, including preconstruction.
Beyond its construction businesses, EMCOR is benefiting from a growing Building Services platform. Second-quarter Building Services revenues increased 5.6% year over year, while operating income grew 26.6%, supported by a larger service base and customer investments in HVAC retrofits, control systems upgrades, indoor air quality improvements and energy efficiency initiatives. The company is also using strategic acquisitions to expand its capabilities and geographic reach, while its Industrial Services business continues to benefit from greater field services activity and industrial project opportunities.
EMCOR remains focused on disciplined project execution, customer service, workforce development and strategic acquisitions as demand across its core markets evolves. The company continues to invest in training, innovation, safety, prefabrication and VDC to improve productivity and strengthen execution, while maintaining pricing discipline and carefully selecting opportunities. Its ability to execute large and complex projects, deepen customer relationships and expand into attractive end markets provides a solid foundation for continued growth across critical infrastructure and mission-critical facilities.
The Case for DY Stock
This Florida-based infrastructure service provider is benefiting from robust demand across digital and critical infrastructure as customers expand fiber networks, data center interconnects and other connectivity infrastructure. In the second quarter of fiscal 2027, Dycom reported record revenues of $2.01 billion, up 45.6% year over year, while organic revenues increased 16.7%. The company is seeing heightened activity across fiber-to-the-home, long-haul, middle-mile, data center interconnects and data center electrical and structured cabling systems.
Dycom is also expanding its opportunity set through Building Systems as data center demand remains strong. Power Solutions is benefiting from substantial growth, while inside-the-plant structured cabling provides another avenue to participate in data center infrastructure spending. Total backlog reached a record $12.24 billion at the end of the second quarter of fiscal 2027, up 53.2% year over year, with $6.47 billion expected to be completed over the next 12 months. Contracted backlog for long-haul, middle-mile and inside-the-fence fiber also exceeded $1 billion. The strong backlog position supported Dycom’s decision to raise its fiscal 2027 revenue outlook to $7.48-$7.66 billion, implying a 36.5% total revenue increase and 11.3% organic growth at the midpoint.
However, Communications margins face near-term pressure as Dycom invests to scale its operations and workforce across growing fiber programs. Adjusted EBITDA margin for the segment declined 134 basis points in the second quarter of fiscal 2027, reflecting higher workforce investments, wireless work moving into fiscal 2028 and higher fuel costs. The company expects Communications margins to decline slightly for fiscal 2027 as these factors continue to affect operating leverage.
Looking ahead, Dycom continues to benefit from a long runway of fiber and digital infrastructure investment. Fiber-to-the-home revenues increased nearly 60% in the first half, while cloud migration, AI workloads and data center growth are driving demand for long-haul fiber corridors and high-strand interconnects. With more than $1 billion of contracted long-haul, middle-mile and inside-the-fence fiber backlog and a broader $20 billion opportunity expected to be weighted toward the latter part of the decade, Dycom has a long runway to capitalize on continued infrastructure deployment.
Stock Performance & Valuation
As witnessed from the chart below, EMCOR’s share price performance has outperformed Dycom, the Zacks Building Products - Heavy Construction industry, the broader Construction sector and the S&P 500 Index in the year-to-date period.
Image Source: Zacks Investment Research
Considering valuation, EMCOR has been trading above Dycom on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends: EME vs. DY
The Zacks Consensus Estimate for EME’s 2026 earnings is unchanged at $32.98 per share, while the 2027 estimate has edged up slightly to $37.23 over the past 30 days. The estimates for 2026 and 2027 imply year-over-year growth of 27.5% and 12.9%, respectively.
EME’s EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Dycom’s fiscal 2027 and 2028 earnings has trended upward over the past 30 days to $16.98 and $20.12 per share, respectively. The revised estimates for fiscal 2027 and 2028 imply year-over-year growth of 41.9% and 18.5%, respectively.
DY’s EPS Trend
Image Source: Zacks Investment Research
Should Investors Choose EME or DY Stock?
Both EMCOR and Dycom are benefiting from strong demand for critical infrastructure, data centers and digital transformation, with each company showing solid growth opportunities and expanding backlogs. However, their current Zacks rankings and earnings estimate trends provide an important distinction. EMCOR sports a Zacks Rank #1 (Strong Buy), while Dycom has a Zacks Rank #3 (Hold) at present. EME also has a favorable earnings estimate trend, with the 2027 consensus estimate edging higher over the past 30 days.
Although Dycom is benefiting from robust fiber demand, a record backlog and strong growth prospects, EME has an edge over it at present. EMCOR’s stronger Zacks Rank, growth across Electrical and Mechanical Construction businesses, record RPOs and expanding opportunities in data centers and other critical infrastructure make it the more compelling choice for investors seeking exposure to the ongoing infrastructure spending cycle. You can see the complete list of today’s Zacks #1 Rank stocks here.
View the Zacks #1 Rank List
Image: Bigstock
EMCOR vs. Dycom: Which Infrastructure Stock Is the Better Buy Now?
Key Takeaways
The growing demand for data centers, digital infrastructure and critical facilities is creating a favorable backdrop for contractors supporting increasingly complex construction and connectivity needs. Against this backdrop, EMCOR Group, Inc. (EME - Free Report) and Dycom Industries, Inc. (DY - Free Report) are positioned to benefit from sustained investment in critical infrastructure and digital transformation. Customers are expanding data center capacity, AI infrastructure, communications networks and other mission-critical facilities, while relying on contractors with the skilled workforce, technical expertise and operational capabilities to execute complex projects safely and reliably.
EMCOR is benefiting from expanding opportunities across electrical and mechanical construction, particularly in data centers, network and communications, high-tech manufacturing and other complex facilities. Dycom, meanwhile, is seeing strong demand across fiber-to-the-home, long-haul and middle-mile fiber, data center interconnects, structured cabling and Building Systems. Both companies emphasize customer relationships, operational focus, workforce development and reliable execution as they support customers’ evolving infrastructure requirements.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for EME Stock
This Connecticut-based infrastructure service provider continues to benefit from broad demand across construction and building services markets. In the second quarter of 2026, EMCOR’s Electrical Construction revenues increased 24% year over year, while Mechanical Construction revenues rose more than 31%. Strong activity in data centers, network and communications, institutional, manufacturing and industrial, and warehousing and distribution is supporting growth as customers invest in mission-critical projects. The company is leveraging its prefabrication capabilities, Virtual Design and Construction (“VDC”), disciplined labor management and advanced project planning to execute complex projects safely and efficiently.
EMCOR’s growth visibility is also being strengthened by its record Remaining Performance Obligations (RPOs). At the end of the second quarter, RPOs reached $17.14 billion, up 44% year over year, with strong bookings across network and communications, water and wastewater, health care and institutional markets. Demand in network and communications, led by data centers, remains exceptionally strong as customers invest in AI infrastructure and digital transformation. The company is also deepening customer relationships as clients expand across geographies, facilities, trades and technical disciplines, including preconstruction.
Beyond its construction businesses, EMCOR is benefiting from a growing Building Services platform. Second-quarter Building Services revenues increased 5.6% year over year, while operating income grew 26.6%, supported by a larger service base and customer investments in HVAC retrofits, control systems upgrades, indoor air quality improvements and energy efficiency initiatives. The company is also using strategic acquisitions to expand its capabilities and geographic reach, while its Industrial Services business continues to benefit from greater field services activity and industrial project opportunities.
EMCOR remains focused on disciplined project execution, customer service, workforce development and strategic acquisitions as demand across its core markets evolves. The company continues to invest in training, innovation, safety, prefabrication and VDC to improve productivity and strengthen execution, while maintaining pricing discipline and carefully selecting opportunities. Its ability to execute large and complex projects, deepen customer relationships and expand into attractive end markets provides a solid foundation for continued growth across critical infrastructure and mission-critical facilities.
The Case for DY Stock
This Florida-based infrastructure service provider is benefiting from robust demand across digital and critical infrastructure as customers expand fiber networks, data center interconnects and other connectivity infrastructure. In the second quarter of fiscal 2027, Dycom reported record revenues of $2.01 billion, up 45.6% year over year, while organic revenues increased 16.7%. The company is seeing heightened activity across fiber-to-the-home, long-haul, middle-mile, data center interconnects and data center electrical and structured cabling systems.
Dycom is also expanding its opportunity set through Building Systems as data center demand remains strong. Power Solutions is benefiting from substantial growth, while inside-the-plant structured cabling provides another avenue to participate in data center infrastructure spending. Total backlog reached a record $12.24 billion at the end of the second quarter of fiscal 2027, up 53.2% year over year, with $6.47 billion expected to be completed over the next 12 months. Contracted backlog for long-haul, middle-mile and inside-the-fence fiber also exceeded $1 billion. The strong backlog position supported Dycom’s decision to raise its fiscal 2027 revenue outlook to $7.48-$7.66 billion, implying a 36.5% total revenue increase and 11.3% organic growth at the midpoint.
However, Communications margins face near-term pressure as Dycom invests to scale its operations and workforce across growing fiber programs. Adjusted EBITDA margin for the segment declined 134 basis points in the second quarter of fiscal 2027, reflecting higher workforce investments, wireless work moving into fiscal 2028 and higher fuel costs. The company expects Communications margins to decline slightly for fiscal 2027 as these factors continue to affect operating leverage.
Looking ahead, Dycom continues to benefit from a long runway of fiber and digital infrastructure investment. Fiber-to-the-home revenues increased nearly 60% in the first half, while cloud migration, AI workloads and data center growth are driving demand for long-haul fiber corridors and high-strand interconnects. With more than $1 billion of contracted long-haul, middle-mile and inside-the-fence fiber backlog and a broader $20 billion opportunity expected to be weighted toward the latter part of the decade, Dycom has a long runway to capitalize on continued infrastructure deployment.
Stock Performance & Valuation
As witnessed from the chart below, EMCOR’s share price performance has outperformed Dycom, the Zacks Building Products - Heavy Construction industry, the broader Construction sector and the S&P 500 Index in the year-to-date period.
Image Source: Zacks Investment Research
Considering valuation, EMCOR has been trading above Dycom on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends: EME vs. DY
The Zacks Consensus Estimate for EME’s 2026 earnings is unchanged at $32.98 per share, while the 2027 estimate has edged up slightly to $37.23 over the past 30 days. The estimates for 2026 and 2027 imply year-over-year growth of 27.5% and 12.9%, respectively.
EME’s EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Dycom’s fiscal 2027 and 2028 earnings has trended upward over the past 30 days to $16.98 and $20.12 per share, respectively. The revised estimates for fiscal 2027 and 2028 imply year-over-year growth of 41.9% and 18.5%, respectively.
DY’s EPS Trend
Image Source: Zacks Investment Research
Should Investors Choose EME or DY Stock?
Both EMCOR and Dycom are benefiting from strong demand for critical infrastructure, data centers and digital transformation, with each company showing solid growth opportunities and expanding backlogs. However, their current Zacks rankings and earnings estimate trends provide an important distinction. EMCOR sports a Zacks Rank #1 (Strong Buy), while Dycom has a Zacks Rank #3 (Hold) at present. EME also has a favorable earnings estimate trend, with the 2027 consensus estimate edging higher over the past 30 days.
Although Dycom is benefiting from robust fiber demand, a record backlog and strong growth prospects, EME has an edge over it at present. EMCOR’s stronger Zacks Rank, growth across Electrical and Mechanical Construction businesses, record RPOs and expanding opportunities in data centers and other critical infrastructure make it the more compelling choice for investors seeking exposure to the ongoing infrastructure spending cycle. You can see the complete list of today’s Zacks #1 Rank stocks here.