Dycom Industries, Inc. research snapshot
DY AI stock analysis currently sees Dycom Industries as a specialty infrastructure contractor benefiting from telecom fiber builds, broadband upgrades, utility work, and a larger data-center electrical footprint after the Power Solutions acquisition. Fiscal 2026 revenue reached about $5.55 billion, free cash flow more than doubled to about $435 million, and total backlog later climbed to about $11.9 billion after a strong fiscal 2027 first quarter. The central trade-off is that the July 10, 2026 price reference of $425.72 values that momentum near 40.6x trailing EPS. The DY AI stock forecast uses scenarios, not a precise price prediction.
Current price
$425.72
Market cap
$12.79 billion verified market cap
AI score
67 / 100
Rating
Strong fiber and data-center infrastructure demand with a premium valuation and execution constraint
Trend status
Long-term uptrend above the 200-day average after a pullback from the May 2026 high
Data cutoff (updated weekly)
July 12, 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 became CEO after a late-2024 leadership transition from long-time CEO Steven Nielsen. The key test is whether fiber growth, data-center diversification, and capital allocation convert 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. Trailing twelve-month revenue later reached about $6.25 billion, with backlog near $11.9 billion after fiscal 2027 Q1. | High |
| Valuation | At $425.72, DY is near 40.6x trailing EPS, 6.7x book value, and about 29x fiscal 2026 free cash flow per share. The multiple assumes sustained earnings growth. | Medium-high |
| Technical trend | Price sits below a 50-day moving-average reference near the mid-$450s and remains above a 200-day reference near the low-to-mid $370s after retreating from the May 2026 high near $535. | 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, 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 10, 2026 price reference of $425.72, trailing EPS of $10.48, and a three-year earnings multiple framework. The audited model produced a bearish value near $188.60, a base value near $412.30, and a bullish value near $723.10 before any dividend effect. These are scenario ranges, not promises.
$680 to $780
More likely if fiber and broadband programs stay strong, data-center electrical work scales cleanly after Power Solutions, margins hold, free cash flow stays elevated, leverage trends lower, and investors keep paying a high-30s earnings multiple on faster EPS growth.
$380 to $450
More likely if EPS compounds near low double digits, fiscal 2027 revenue tracks the raised outlook band, project execution stays disciplined, and the valuation settles near a high-20s earnings multiple.
$170 to $210
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 high-teens earnings multiple.
DY AI technical analysis
DY AI technical analysis is mixed as of the July 12, 2026 cutoff. DY closed at $425.72 on July 10 after a pullback from the May 28, 2026 closing high of $535.20. A recent technical screen listed a 50-day simple moving average near $453.56 and a 200-day simple moving average near $373.14. These are reference levels, not certainty about the next move.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $425.72 | July 10, 2026 closing price from Macrotrends and corroborating market quotes. |
| Immediate support | $410 to $420 | This area covers recent pullback lows and the lower end of the early-July trading zone. |
| Deeper support | $370 to $380 | This zone includes the 200-day moving-average reference and is the next visible support area after a failed mid-$400 hold. |
| Near resistance | $450 to $470 | This range covers the 50-day moving-average band and the first reclaim zone after the June to early-July decline. |
| Upper resistance | $500 to $535 | This area includes late-June closes near $500 to $506 and the May 28, 2026 closing high near $535.20. |
| Moving averages | 50-day SMA near $453.56, 200-day SMA near $373.14 | Price is below the intermediate trend reference and remains above the longer-term trend reference. |
| Momentum | Positive long-term structure, corrective short-term action | One-year total return was still strongly positive as of July 10, but the stock had pulled back from the May peak into the mid-$400s. |
| Volume | Average volume near 0.5 to 0.6 million shares | Volume should be monitored on moves through the $450 resistance band or the $410 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 $370 | 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 $410 to $420 support area and reclaim $450 to $470, 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 $370 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, backlog, organic growth, adjusted EBITDA margin, free cash flow, net debt, customer concentration, and fiscal 2027 guidance updates.
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 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 $425.72, 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 | $425.72 close on July 10, 2026 | Macrotrends DY stock price history | July 12, 2026 |
| Market capitalization verification | $12.79 billion reported, $12.78 billion calculated from $425.72 x 30.03 million shares (0.04% variance) | Pineify financial_rigor.py, StockAnalysis, and market quotes | July 12, 2026 |
| FY2026 revenue and net income | About $5.55 billion revenue and $281.2 million net income; revenue up about 18% year over year | Macrotrends, StockAnalysis, and company fiscal 2026 results coverage | July 12, 2026 |
| FY2026 free cash flow and adjusted earnings | About $435 million free cash flow and non-GAAP adjusted diluted EPS near $11.97 for fiscal 2026 | Macrotrends free cash flow series and fiscal 2026 earnings coverage | July 12, 2026 |
| Fiscal 2027 Q1 operating snapshot | Contract revenues about $1.965 billion (+56.1% year over year), adjusted diluted EPS $4.42, adjusted EBITDA about $262.5 million, and total backlog about $11.906 billion | Dycom fiscal 2027 first-quarter results summaries | July 12, 2026 |
| Trailing twelve-month fundamentals | About $6.25 billion revenue, $311.4 million net income, and $10.48 EPS; shares outstanding about 30.03 million | StockAnalysis DY overview and statistics | July 12, 2026 |
| Balance sheet snapshot | Cash about $549 million, debt-to-equity about 1.58x, book value per share about $63.15, and enterprise value near $15.3 billion | Yahoo Finance key statistics and Morningstar key metrics | July 12, 2026 |
| TTM valuation metrics | 40.62x EPS, 6.74x book value, about 29.4x fiscal 2026 free cash flow per share, and 0.00% dividend yield | Pineify financial_rigor.py and market statistics | July 12, 2026 |
| Technical references | 50-day SMA near $453.56, 200-day SMA near $373.14, beta about 1.50, 52-week range about $233 to $566, and May 28, 2026 closing high $535.20 | Chartmill technical screen, Macrotrends, and market quotes | July 12, 2026 |
| Strategic diversification | Power Solutions acquisition closed December 23, 2025, expanding Dycom deeper into data-center electrical construction; fiscal 2027 revenue outlook later raised toward about $7.38 to $7.65 billion after Q1 | Dycom IR releases and fiscal 2027 Q1 results coverage | July 12, 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 July 12, 2026 and can be wrong if fundamentals, valuation multiples, market conditions, or source data change.
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