We discussed Dycom here a few years back, some bought most did not. It seems boring - digging ditches and laying fiber. Also installs equipment in telco offices and data centers at the end of the fiber. But business is booming, Verizon and ATT are in a contest to build out fiber fast, and smaller telcos like Century link are trying to keep up and play in the datacenter game. Gotta get ready for 5G, which is just starting to build out. Cord cutters are streaming NFLX, HULU, ESPN, Youtube, etc. Google slowly putting on the pressure with their 1G fiber to the home intiative, which sounds insane, but so does making money on searches.
Ranks #1 in its telecom-infrastructure group. Very Strong grow rankings:
Composite Rating 98 Pass
EPS Rating 98 Pass
RS Rating 92 Pass
Group RS Rating B+ Pass
SMR Rating A Pass
Acc/Dis Rating A Pass
Strong chart too http://stockcharts.com/freecharts/gallery.html?dy
They do have some tough comps next quarter, that and a possible summer swoon might be a time to serious consider it.
Here is a good article on it from IBD’s The New America. A great starting place for some young growth stocks.
“Several industry participants have articulated plans to deploy multigigabit speeds, while others are preparing to do so,” Dycom CEO Steven Nielsen said on a recent call with analysts. “These industry developments have produced opportunities across a broad array of our existing customers, which in aggregate are without precedent for the industry in our experience.”
has posted 20% or greater year-over-year sales growth for the last seven quarters.
In its fiscal second quarter ended Jan. 28, Dycom earned 82 cents a share excluding items, up 52% from the year-earlier period, on sales that rose 25% to $701 million. The company’s results were boosted by deployments of 1-gigabit wireline networks for key customers.
The split of its business last quarter was 68.1% in telecom, 24.4% for cable, 4.9% in facility-locating services, and electrical and other making up the rest
For instance, Verizon has embarked on a major, multi-city fiber deployment with the aim of building out a fiber network that will support all of the company’s businesses, including the deployment of 5G wireless.
“We roughly size the initial phase of Verizon’s fiber deployment at $5 billion to $7 billion over the next three years, which we believe could translate into $300 million-plus of annual incremental revenue opportunity for Dycom,” Stifel analyst Noelle Dilts said in a report April 19. "This could translate into $47 million in EBITDA
EPS due 5/22/17. Several price targets at $120.
Last 3 Qtrs Avg EPS Growth 52%
Last Quarter % Earnings Surprise 18.8%
3 Yr EPS Growth Rate 83%
Consecutive Yrs of Annual EPS Growth 2
EPS Est % Chg for Current Year 22%
Sales % Chg (Last Qtr) 25%
3 Yr Sales Growth Rate 20% (prefer 25%+)
Annual Pre-Tax Margin 8.9%(low)
Annual ROE 27.9%
Debt/Equity Ratio 127% (Poor)
RS Rating 92
Up/Down Volume 1.8
% Change In Funds Owning Stock -2% (prefer increasing ownership)
Competitors and group rankings…
1DY DYCOM INDS INC
2ZAYO ZAYO GROUP HOLDINGS INC
3COMM COMMSCOPE HOLDING CO INC
4NSR NEUSTAR INC
5AVNW AVIAT NETWORKS INC
Happy hunting. Hoping for a dip.