Dycom Industries, Inc. research snapshot
DY AI stock analysis sees Dycom Industries as a leading specialty contractor for telecom fiber, broadband, utility, and data-center electrical infrastructure. Fiscal 2026 revenue reached about $5.55 billion, and the record first quarter of fiscal 2027 pushed total backlog to about $11.9 billion while the company raised its full-year outlook to about $7.38 to $7.65 billion. The central trade-off is that the July 31, 2026 close of $401.07 still values that momentum near 38.3x trailing EPS and 24.1x forward EPS. The DY AI stock forecast uses scenarios, not a precise price prediction.
Current price
$401.07
Market cap
$12.04 billion verified market cap
AI score
66 / 100
Rating
Record fiber and data-center infrastructure demand with a premium valuation and execution sensitivity
Trend status
Long-term uptrend intact above the 200-day average but below the 50-day average after a sharp pullback from the May 2026 high
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Dycom provides engineering, construction, maintenance, and installation services for telecommunications, broadband, utility, and increasingly data-center electrical infrastructure across the United States. | High |
| Moat | Scale, skilled field labor, long customer relationships, safety qualifications, equipment, and regional operating density matter, but the business remains competitive and project intensive. | Medium-high |
| Management | Dan Peyovich is CEO after the late-2024 leadership transition from long-time CEO Steven Nielsen. The key test is whether fiber growth, data-center diversification through Power Solutions and National Technology Integrators, and capital allocation convert record backlog into durable free cash flow without balance-sheet stress. | Medium-high |
| Financial trend | Fiscal 2026 revenue was about $5.55 billion and net income about $281 million. Fiscal 2027 first-quarter revenue grew 56.1% to about $1.96 billion, with total backlog near $11.9 billion and raised full-year revenue guidance of $7.38 to $7.65 billion. | High |
| Valuation | At $401.07, DY trades near 38.3x trailing EPS, 24.1x forward EPS, 6.35x book value, and 27.4x trailing free cash flow. The multiple assumes continued earnings growth and successful diversification. | Medium-high |
| Technical trend | Price is below the 50-day moving-average reference near $449.59 and above the 200-day reference near $384.25 after falling from the May 28, 2026 closing high of $535.20. | Medium |
| Risk level | Risks include customer concentration, project cost and schedule pressure, labor shortages, weather, acquisition integration, higher leverage, interest expense, and a premium valuation. | Medium-high |
| AI confidence | Historical and reported-data confidence is high. Confidence in future market returns is lower because valuation, customer spending timing, and construction execution are uncertain. | High data confidence |
| Investment certainty | DY has strong operating momentum and record demand, but it is not a high-certainty bargain at a premium earnings multiple after a large multi-year re-rating. | Medium |
DY AI stock forecast
The DY AI stock forecast uses the July 31, 2026 close of $401.07, fiscal 2027 consensus adjusted EPS of $16.56, and a three-year earnings multiple framework. The audited model produced a bearish value near $288, a base value near $540, and a bullish value near $744. These are scenario ranges, not promises.
$680 to $790
More likely if fiber and broadband programs stay strong, Power Solutions and National Technology Integrators scale cleanly, margins expand, free cash flow stays elevated, leverage trends lower, and investors keep paying near-current forward multiples on faster EPS growth.
$490 to $590
More likely if EPS compounds near consensus forecasts, fiscal 2027 revenue lands in the raised outlook band, project execution stays disciplined, and the valuation holds near current forward multiples.
$260 to $330
More likely if large telecom customers slow spend, project mix or weather weakens margins, acquisition integration or leverage pressure rises, backlog conversion slows, or the market re-rates DY toward a lower earnings multiple.
DY AI technical analysis
DY AI technical analysis is corrective as of the August 3, 2026 cutoff. DY closed at $401.07 on July 31 after declining from the May 28, 2026 closing high of $535.20. A recent technical screen listed a 50-day simple moving average near $449.59, a 200-day simple moving average near $384.25, and an RSI near 43. These are reference levels, not certainty about the next move.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $401.07 | July 31, 2026 closing price from Macrotrends and corroborating market quotes. |
| Immediate support | $384 to $400 | This area covers the 200-day moving-average reference and the lower end of the late-July trading zone. |
| Deeper support | $360 to $380 | This zone sits below the 200-day reference and is the next visible support area toward the 52-week average price near $361. |
| Near resistance | $417 to $450 | This range covers recent rebound attempts and the 50-day moving-average band near $449.59. |
| Upper resistance | $500 to $535 | This area includes early-June closes near $500 to $506 and the May 28, 2026 closing high near $535.20. |
| Moving averages | 50-day SMA near $449.59, 200-day SMA near $384.25 | Price is below the intermediate trend reference but remains above the longer-term trend reference. |
| Momentum | Positive long-term structure, corrective short-term action | RSI near 43 reflects a pullback from the May peak, while the one-year total return remained strongly positive. |
| Volume | Average volume near 0.46 million shares | Volume should be monitored on moves through the $417 to $450 resistance band or the $384 support band. |
| Volatility | Elevated, beta about 1.50 | DY can move sharply as infrastructure-cycle expectations, customer spending news, and its valuation change. |
| Invalidation | Sustained close below $384 | A decisive break below the 200-day area would weaken the near-term trend-following setup and shift focus toward lower support. |
DY AI trading strategy
The DY AI trading strategy below is a rules-based research framework, not personal advice. It combines technical levels with backlog conversion, customer mix, margins, free cash flow, leverage, and changes to management guidance.
Watch for DY to hold the $384 to $400 support area and reclaim $417 to $450, then assess whether a move toward $500 to $535 is accompanied by resilient backlog, margin, and guidance signals.
Reduce setup confidence after a sustained break below $384 or if management commentary points to weaker customer spending, project timing, or acquisition integration.
If DY retests support, compare the lower price with updated EPS, free cash flow, net leverage, backlog quality, and peer specialty-contractor multiples before treating the pullback as an opportunity.
Do not assume a lower price is attractive if large-customer delays, margin pressure, weaker cash conversion, or leverage stress appear in filings.
Track fiber and broadband program activity, data-center electrical contribution after Power Solutions and National Technology Integrators, backlog, organic growth, adjusted EBITDA margin, free cash flow, net debt, customer concentration, and the August 19, 2026 earnings report.
Position sizing should reflect that DY is an execution-sensitive contractor with high market expectations, not a predictable subscription business.
Investment research summary
Customers pay Dycom to engineer, construct, install, and maintain telecom fiber, broadband, utility, and data-center electrical infrastructure that requires specialized field labor, equipment, and safety-qualified crews.
Dycom benefits from scale, customer relationships, skilled labor density, equipment, safety credentials, and multi-region operating experience. These advantages help win and execute work, but competitors such as large infrastructure contractors can still contest projects and pricing.
The thesis fails if major telecom customers cut or delay spend, project cost estimates deteriorate, labor shortages or weather disrupt schedules, Power Solutions or National Technology Integrators integration disappoints, leverage constrains flexibility, or the valuation falls faster than earnings grow.
Dan Peyovich leads after the transition from Steven Nielsen. The management question is whether capital allocation, acquisitions, and operating discipline convert fiber and data-center demand into durable free cash flow without raising balance-sheet risk.
Fiber-to-the-home, broadband upgrades, wireless densification, utility infrastructure, and AI-driven data-center power work can support multi-year demand. The counterweight is that carrier budgets, permitting, weather, labor supply, and project timing remain cyclical and customer concentrated.
At $401.07, the market is pricing in continued earnings growth and successful diversification into higher data-center related work. Margin of safety would improve if cash conversion and backlog quality remain strong while the price or valuation multiple becomes less demanding.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| DY quote reference | $401.07 close on July 31, 2026 | Macrotrends DY stock price history | August 3, 2026 |
| Market capitalization verification | $12.04 billion reported, $12.04 billion calculated from $401.07 x 30.03 million shares (0.03% variance) | Pineify financial_rigor.py, StockAnalysis, and market quotes | August 3, 2026 |
| FY2026 revenue and net income | About $5.55 billion revenue and $281.19 million net income; revenue up about 17.95% year over year | Macrotrends, StockAnalysis, and company fiscal 2026 results coverage | August 3, 2026 |
| Fiscal 2027 Q1 operating snapshot | Contract revenues about $1.965 billion (+56.1%, +24.7% organic), GAAP diluted EPS $3.00, adjusted diluted EPS $4.42, adjusted EBITDA about $262.5 million (13.4% of revenues), and total backlog about $11.906 billion | Dycom fiscal 2027 first-quarter results press release | August 3, 2026 |
| Fiscal 2027 outlook after Q1 | Full-year contract revenues raised to about $7.38 to $7.65 billion; second-quarter outlook of $1.94 to $2.01 billion revenue, $284 to $303 million adjusted EBITDA, and $4.40 to $4.82 adjusted diluted EPS | Dycom fiscal 2027 first-quarter results press release | August 3, 2026 |
| Trailing twelve-month fundamentals | About $6.25 billion revenue, $311.43 million net income, and $10.48 EPS; shares outstanding about 30.03 million | StockAnalysis DY overview and statistics | August 3, 2026 |
| Balance sheet snapshot | Cash about $549 million, total debt about $3.00 billion, net cash negative about $2.45 billion, book value per share about $63.14, and enterprise value near $14.49 billion | StockAnalysis statistics and Yahoo Finance key statistics | August 3, 2026 |
| TTM valuation metrics | 38.27x EPS, 24.05x forward EPS, 6.35x book value, 27.36x free cash flow, 1.93x sales, 17.98x EV/EBITDA, and 0.00% dividend yield | Pineify financial_rigor.py and StockAnalysis statistics | August 3, 2026 |
| Analyst consensus | Strong Buy from 11 analysts with an average price target near $637.27, a low of $610, and a high of $700 | StockAnalysis forecast and TipRanks coverage | August 3, 2026 |
| Technical references | 50-day SMA near $449.59, 200-day SMA near $384.25, RSI near 43, beta about 1.50, 52-week range about $233 to $566, and May 28, 2026 closing high $535.20 | StockAnalysis statistics, Macrotrends, and market quotes | August 3, 2026 |
| Strategic diversification | Power Solutions contributed its first full quarter inside Building Systems in fiscal 2027 Q1, and the company agreed to acquire National Technology Integrators for $275 million to expand data-center structured cabling capabilities | Dycom fiscal 2027 Q1 results press release and IR coverage | August 3, 2026 |
This DY AI stock analysis is an informational research tool only. It is not investment advice, a recommendation, or a guarantee of future performance. Forecast scenarios are based on available public data as of August 3, 2026 and can be wrong if fundamentals, valuation multiples, market conditions, or source data change.
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