Key Takeaways AVO, SMP, DY and CENX were selected for strong net margins and solid EPS growth outlooks.Each stock has a VGM Score of A and a Zacks Rank of 1 or 2, signaling high-return potential.Earnings estimates for AVO, DY and CENX were revised upward within the past 60 days.Investors prefer to invest in businesses that reap profits on a regular basis. To gauge the extent of profits, there is no better metric than the net profit margin.A higher net margin reflects a company’s efficiency in converting sal ...

Core Insights - The Zacks Building Products - Heavy Construction industry is experiencing significant growth driven by a generational infrastructure push and increased federal spending on transportation, broadband, and clean energy initiatives [1][4] - Established companies like EMCOR Group, MasTec, and Dycom Industries are well-positioned to capitalize on this growth due to their technical expertise and disciplined project execution [2][5] Industry Overview - The industry encompasses mechanical and electrical construction, industrial and energy infrastructure, and building service providers, focusing on transportation projects and communications infrastructure [3] - The U.S. administration's infrastructure plan aims to create modern, sustainable infrastructure, which is expected to significantly impact the economy and construction industry over the next five years [4] Growth Drivers - The data center boom is increasing demand for large-scale site development and specialized mechanical systems, benefiting companies with technical expertise and national reach [5] - The ramp-up of 5G projects is driving demand for telecommunications infrastructure, with significant investments expected in network expansion [6] - Acquisitions are being used by companies to solidify their product portfolios, while the renewable energy sector is poised for growth due to increased project activity [7] Macroeconomic Environment - The industry faces challenges such as a tight labor market, rising raw material costs, and economic uncertainty, which could affect project economics and capital expenditure budgets [8] Industry Performance - The Zacks Building Products - Heavy Construction industry ranks 32, placing it in the top 13% of over 250 Zacks industries, indicating solid near-term prospects [9][10] - The industry's earnings estimates for 2025 have increased from $5.90 to $6.52 per share, reflecting growing analyst confidence [11] Stock Performance - The industry has outperformed the broader Zacks Construction sector and the S&P 500, with a collective gain of 51.5% over the past year compared to a 3.2% decline in the sector [13] - The industry's forward 12-month price-to-earnings ratio is currently at 23.47, slightly below the S&P 500's 23.55 [17] Company Highlights - **EMCOR Group**: Positioned for growth with a record backlog and strong demand from infrastructure and data center projects, with earnings expected to grow 17.1% in 2025 [20][21] - **MasTec**: Benefiting from robust demand across multiple segments, with a backlog increase of 23% year over year and expected EPS growth of 60% in 2025 [25][26] - **Dycom Industries**: Capitalizing on investments in broadband and digital infrastructure, with earnings estimates for fiscal 2026 increasing to $10.01 per share [28][29]

Company Performance - Dycom Industries (DY) shares have increased by 9.1% over the past month and reached a new 52-week high of $301.88 [1] - The stock has gained 69.7% since the beginning of the year, outperforming the Zacks Construction sector's 5.1% gain and the Zacks Building Products - Heavy Construction industry's 46% return [1] Earnings and Revenue - Dycom Industries has a strong record of positive earnings surprises, beating the Zacks Consensus Estimate in the last four quarters [2] - In the latest earnings report on August 20, 2025, the company reported EPS of $3.33, exceeding the consensus estimate of $2.86, but missed the revenue estimate by 1.3% [2] - For the current fiscal year, earnings are expected to be $10.01 per share on revenues of $5.31 billion, with a year-over-year change of 10.42% [3] - For the next fiscal year, earnings are projected at $11.05 per share on revenues of $5.69 billion, representing a year-over-year change of 7.28% [3] Valuation Metrics - Dycom Industries has a Value Score of C, a Growth Score of A, and a Momentum Score of F, resulting in a VGM Score of B [6] - The stock trades at 29.5X current fiscal year EPS estimates, above the peer industry average of 27.3X, and at 19.6X trailing cash flow compared to the peer group's average of 16.5X [7] - The PEG ratio stands at 1.41, indicating it is not in the top echelon from a value perspective [7] Zacks Rank - Dycom Industries holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend [8] - The company meets the criteria for selection, as it has a Zacks Rank of 1 or 2 and Style Scores of A or B, suggesting potential for future growth [9] Industry Comparison - The Building Products - Heavy Construction industry is in the top 13% of all industries, indicating favorable conditions for both Dycom Industries and its peer, MasTec, Inc. [12] - MasTec, Inc. also has a Zacks Rank of 2 (Buy) and shows strong earnings performance, with expected earnings of $6.32 per share on revenues of $13.98 billion for the current fiscal year [11]

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...

Group 1 - nLight (LASR) has seen a 50% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Photronics (PLAB) has experienced an 8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Weatherford International (WFRD) has seen a 6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - California Resources (CRC) has experienced a 5.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Dycom Industries (DY) has seen a 5.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Market Sentiment - The hedge fund Peconic Partners, managed by Bill Harnisch, has seen a 580% increase since 2020, outperforming the S&P 500 this year by tripling its returns [1][2] - Harnisch expresses concern over market volatility and potential negative impacts from external factors, indicating a sense of unease among investors [2][4] Economic Risks - President Trump's unexpected tariff threats against China have negatively impacted high-valuation assets, leading to significant market declines [3][4][7] - The ongoing US government shutdown is obscuring economic health and could further hinder growth by affecting federal employees' paychecks [4][10] Investment Trends - There are growing concerns regarding the sustainability of investments in artificial intelligence, with skepticism about whether current valuations can be justified [5][8][9] - Gold prices have surged, reaching over $4,000 per ounce, as investors seek safe-haven assets amid declining confidence in the US dollar [6] Market Corrections - The International Monetary Fund has compared the current market conditions to the dot-com era, warning of potential sharp corrections due to stretched valuations [9] - Recent performance of companies like Oracle Corp. highlights the risks associated with high expectations in the AI sector, as their stock experienced a significant drop following disappointing profit margin reports [9] Fund Strategies - Peconic Partners has maintained a conservative leverage strategy, focusing on long-term holdings in resilient sectors while betting against consumer-related stocks [15] - Harnisch emphasizes the importance of companies that generate free cash flow, indicating a preference for stability in uncertain economic conditions [16]

In the current market session, Dycom Industries Inc. (NYSE:DY) stock price is at $291.17, after a 0.99% decrease. However, over the past month, the company's stock went up by 12.49%, and in the past year, by 54.04%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is not performing up to par in the current session. Comparing Dycom Industries P/E Against Its PeersThe P/E ratio measures the current share price to the company's EPS. It is used by long-term invest ...

Core Insights - The article discusses a company's business model that supports the ongoing technological revolution without being a technology firm itself [1] Group 1: Business Model - The company plays a crucial role in facilitating technological advancements by providing physical support [1] Group 2: Investment Approach - The investment strategy focuses on long-term conviction holdings combined with tactical sector rotations, emphasizing the importance of profitability over being right [2] - The approach targets undercovered opportunities and momentum-driven sectors, indicating a proactive investment style [2]

The business model I am going to talk about in this article is that of a company that, without being a technology firm as such, physically supports the technological revolution we are living in today.With a degree in Finance and Accounting and previous experience in financial advisory, I use The Sharpe Quest to share my path as an independent investor and market analyst. My approach mixes long-term conviction holdings with tactical sector rotations, driven by the belief that investing isn’t about being righ ...

WEST PALM BEACH, Fla., Oct. 07, 2025 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) today announced the appointment of Phillip R. Gallagher to its Board of Directors, effective October 7, 2025. Mr. Gallagher currently serves as the Chief Executive Officer of Avnet, Inc. (Nasdaq: AVT) (“Avnet”), a Fortune 500 global technology distributor and solutions provider across a number of industries, including industrials, telecommunications, aerospace and defense and automotive. As a seasoned executive and C ...