Core Insights - Great Lakes Dredge & Dock (GLDD) and Dycom Industries (DY) are both considered for investors interested in undervalued stocks within the Building Products - Heavy Construction sector [1] - Both companies currently hold a Zacks Rank of 1 (Strong Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] Valuation Metrics - GLDD has a forward P/E ratio of 12.11, while DY has a forward P/E of 24.26, suggesting GLDD is more attractively priced [5] - GLDD's PEG ratio is 1.01, compared to DY's PEG ratio of 1.32, indicating GLDD's expected earnings growth is more favorable relative to its valuation [5] - GLDD's P/B ratio is 1.63, significantly lower than DY's P/B of 5.3, further supporting GLDD as the superior value option [6] - Based on these valuation metrics, GLDD holds a Value grade of A, while DY has a Value grade of C, reinforcing the conclusion that GLDD is the better value investment at this time [6]

Market Overview - U.S. stock markets are experiencing a positive trend after recent volatility, with the S&P 500 near its all-time high, and both the Nasdaq Composite and Dow showing positive year-to-date performance [1] - Factors contributing to this market sentiment include ongoing U.S.-China trade negotiations, stability in the U.S. labor market, and a declining inflation rate, which have encouraged investment in equities [2] Stock Performance - A selection of stocks has demonstrated significant price strength, particularly those on a bull run, indicating potential for continued momentum [2][3] - Five highlighted stocks include Sezzle Inc. (SEZL), Dycom Industries Inc. (DY), Tutor Perini Corp. (TPC), Limbach Holdings Inc. (LMB), and Northrim BanCorp Inc. (NRIM) [3] Screening Parameters - Stocks were screened based on several criteria, including: - Percentage Change in Price (4 Weeks) greater than zero, indicating recent upward movement [5] - Percentage Change Price (12 Weeks) greater than 10%, suggesting sustained momentum over three months [5] - Zacks Rank 1, indicating a strong buy rating with historical outperformance [6] - Average Broker Rating of 1, reflecting positive broker sentiment [6] - Current Price above $5, ensuring stocks are trading at a reasonable level [6] - Current Price/52-Week High-Low Range greater than 85%, indicating strong price performance [7] Individual Stock Highlights - **Sezzle Inc. (SEZL)**: Stock price surged 35.7% in four weeks, with expected earnings growth of 76.1% for the current year [8][9] - **Dycom Industries Inc. (DY)**: Stock price increased 20.3% in four weeks, with a revenue outlook raised for fiscal 2026 after strong Q1 results, and expected earnings growth of 13.2% [10][12] - **Tutor Perini Corp. (TPC)**: Stock price rose 12.8% in four weeks, with expected earnings growth exceeding 100% for the current year [16] - **Limbach Holdings Inc. (LMB)**: Stock price advanced 10.8% in four weeks, with expected earnings growth of 21.9% [18] - **Northrim BanCorp Inc. (NRIM)**: Stock price increased 4.9% in four weeks, with expected earnings growth of 45.9% [20]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Dycom Industries (DY) - Dycom Industries currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3]. - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4]. Price Performance - Over the past week, Dycom's shares increased by 5.7%, outperforming the Zacks Building Products - Heavy Construction industry, which rose by 4.21% [6]. - In a longer timeframe, Dycom's shares have surged by 28.97% over the past month, compared to the industry's 11.31% [6]. - Over the last quarter, Dycom's shares have increased by 56.21%, and by 35.71% over the past year, while the S&P 500 only moved 4.9% and 13.46%, respectively [7]. Trading Volume - Dycom's average 20-day trading volume is 454,062 shares, which serves as a bullish indicator when the stock price is rising [8]. Earnings Outlook - In the past two months, four earnings estimates for Dycom have been revised upwards, while none have been lowered, raising the consensus estimate from $9.21 to $9.57 [10]. - For the next fiscal year, two estimates have increased, but there have also been two downward revisions [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, Dycom Industries is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling option for investors seeking short-term gains [12].

Group 1 - Dycom Industries, Inc. (DY) is a company providing specialty contracting services to the telecommunications sector, holding a Zacks Rank 1 with a 3.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Dycom's shares have gained 77.8% over the last three months, significantly outperforming the S&P 500's advance of 6.9%, and the company has a Momentum Score of A [1] Group 2 - Peakstone Realty Trust (PKST) is a real estate investment trust with a Zacks Rank 1, experiencing a 14.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Peakstone Realty's shares have gained 8.6% over the last three months, also outperforming the S&P 500's advance of 6.9%, and the company possesses a Momentum Score of A [4] - Postal Realty shares gained 2.8% over the past six months, contrasting with the S&P 500's decline of 0.5%, and the company has a Momentum Score of B [4]

Core Viewpoint - Dycom Industries, Inc. has shown strong stock performance, significantly outperforming its industry and the broader market over the past three months, with a stock price increase of 38.9% compared to the industry's 11.5% growth [1][5]. Financial Performance - In the first quarter of fiscal 2026, Dycom reported adjusted earnings and contract revenues that exceeded the Zacks Consensus Estimate, with a year-over-year revenue increase of 10.2% driven by strong contributions from AT&T and other customers [2]. - The company's backlog at the end of the fiscal first quarter reached $8.127 billion, up from $7.760 billion at the end of fiscal 2025 and $6.364 billion in the first quarter of fiscal 2025, with $4.685 billion projected to be completed in the next 12 months [11]. Growth Drivers - Dycom is experiencing growth in fiber-to-the-home projects and maintenance contracts, benefiting from customers increasing or reconfirming fiber deployment targets [10]. - The company is expanding its work with hyperscalers by connecting fiber networks and data centers, which opens new markets and enhances its digital infrastructure services [12]. - The service and maintenance segment is a steady source of recurring revenues, with significant new contracts secured during the quarter [14]. Market Position and Valuation - Dycom's stock is currently trading at a premium relative to its industry and historical metrics, with a forward 12-month price-to-earnings (P/E) ratio above the five-year average [17]. - The company's P/E ratio is higher than some industry peers, such as MasTec, EMCOR, and Fluor, which trade at 23.28X, 19X, and 15.67X, respectively [19]. Challenges - Ongoing tariffs and trade tensions pose risks for equipment costs and project margins, with expected increases in costs for offshore-sourced equipment components [20]. - Despite these challenges, Dycom's focus on fiber-to-the-home and hyperscaler initiatives supports long-term growth visibility [21].

Core Insights - Dycom Industries reported revenue of $1.26 billion for the quarter ended April 2025, marking a year-over-year increase of 10.2% [1] - The company's EPS for the same period was $2.09, slightly down from $2.12 a year ago, but exceeded the consensus estimate of $1.60 by 30.62% [1] - The revenue surpassed the Zacks Consensus Estimate of $1.2 billion, resulting in a surprise of 5% [1] Financial Performance - The backlog for Dycom Industries stands at $8.13 billion, exceeding the average estimate of $7.47 billion based on two analysts [4] - Revenue from Lumen Technologies (CenturyLink) was reported at $125.20 million, which is a decline of 20.2% year over year and below the average estimate of $151.63 million [4] - Revenue from AT&T Inc was reported at $325.10 million, reflecting a significant increase of 50.9% year over year and surpassing the average estimate of $259.41 million [4] Stock Performance - Dycom Industries shares have returned +39.4% over the past month, outperforming the Zacks S&P 500 composite's +13.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Dycom Industries Inc. reported better-than-expected results for Q1 fiscal 2026, with contract revenues and adjusted earnings surpassing estimates, leading to a 15.8% increase in stock price following the announcement [1][3]. Financial Performance - Adjusted EPS for Q1 was $2.09, exceeding the Zacks Consensus Estimate of $1.60 by 30.6%, though down from $2.12 in the same quarter last year [3]. - Contract revenues reached $1.259 billion, surpassing the consensus mark of $1.199 billion by 5% and reflecting a year-over-year growth of 10.2% [4]. - Adjusted EBITDA increased by 14.9% to $150.4 million, with an adjusted EBITDA margin of 11.9%, up 40 basis points from the previous year [5]. Customer Contributions - AT&T, Dycom's largest customer, contributed 25.8% to total revenues, showing a year-over-year growth of 50.9% [4]. - Lumen, the second-largest customer, contributed 9.9% to total revenues, which declined by 20.2% from the previous year [4]. - Other customers combined contributed 64.2% to total revenues [4]. Backlog and Liquidity - The backlog as of Q1 totaled $8.127 billion, up from $7.760 billion at the end of fiscal 2025 and $6.364 billion in Q1 of fiscal 2025, with $4.685 billion projected to be completed in the next 12 months [5]. - As of April 26, 2025, Dycom had liquidity of $529.6 million, including cash and cash equivalents of $16.1 million, compared to $92.7 million at the end of fiscal 2025 [6]. Future Guidance - For Q2 fiscal 2026, Dycom expects contract revenues between $1.38 billion and $1.43 billion, compared to $1.203 billion in the same quarter last year [7]. - Adjusted EBITDA for Q2 is projected to be between $185 million and $200 million, indicating growth from $158.3 million reported last year [7]. - EPS is anticipated to be in the range of $2.74-$3.05, up from $2.46 in the year-ago quarter [8]. Revenue Outlook - Dycom raised its fiscal 2026 revenue outlook to between $5.29 billion and $5.425 billion, reflecting a year-over-year growth of 12.5-15.4%, up from the previous expectation of 10.0-13.0% [9].

Financial Data and Key Metrics Changes - The meeting confirmed that a majority of votes were cast for the director nominees and for the proposals regarding executive compensation and auditor ratification, indicating shareholder confidence in the company's governance and financial management [13][14]. Business Line Data and Key Metrics Changes - No specific data regarding individual business lines was discussed during the meeting [18]. Market Data and Key Metrics Changes - No specific market data or key metrics were provided during the meeting [18]. Company Strategy and Development Direction and Industry Competition - The meeting did not delve into specific strategic initiatives or competitive positioning within the industry [18]. Management's Comments on Operating Environment and Future Outlook - Management did not provide detailed comments on the operating environment or future outlook during the meeting [18]. Other Important Information - The meeting acknowledged the retirement of board member Steven Robinson, highlighting his invaluable service [16]. Q&A Session All Questions and Answers - There were no questions submitted during the Q&A session, indicating a lack of immediate shareholder inquiries [18].

Financial Performance - Net income available to common stockholders for the three months ended April 26, 2025, was $61.048 million, compared to $62.554 million for the same period in 2024, reflecting a decrease of approximately 2.4%[34] - Basic earnings per common share for the three months ended April 26, 2025, was $2.11, down from $2.15 in the prior year, indicating a decline of about 1.9%[34] - Total contract revenues for the three months ended April 26, 2025, were $1,258.6 million, a 10.2% increase from $1,142.4 million for the same period in 2024[88] Acquisitions and Goodwill - The company acquired telecommunications construction contractors for a total cash purchase price of $191.2 million across three acquisitions in fiscal 2025, enhancing its geographic presence and customer base[35][36][37] - The company recorded goodwill and intangible assets totaling $161.0 million from the acquisitions, which are deductible for tax purposes[40] - Goodwill balance slightly increased to $330.5 million as of April 26, 2025, from $330.3 million on January 25, 2025, indicating a marginal growth[50] Accounts and Receivables - Total accounts receivable, net, as of April 26, 2025, was $1.528 billion, an increase from $1.375 billion as of January 25, 2025, representing a growth of approximately 11.1%[44] - Contract assets increased to $101.992 million as of April 26, 2025, from $63.375 million as of January 25, 2025, indicating a rise of about 60.7%[45] - Significant customers included Lumen Technologies, which accounted for 16.3% of total combined accounts receivable and contract assets as of April 26, 2025[46] Assets and Liabilities - Other current assets increased to $45.8 million as of April 26, 2025, from $34.6 million on January 25, 2025, representing a growth of approximately 32.3%[47] - Cash and equivalents decreased significantly to $16.1 million as of April 26, 2025, down from $92.7 million on January 25, 2025, a decline of about 82.7%[48] - Total property and equipment net value increased to $567.4 million as of April 26, 2025, compared to $541.9 million on January 25, 2025, reflecting a growth of approximately 4.7%[49] Debt and Interest - As of April 26, 2025, the company's long-term debt amounted to $1,017,635,000, an increase from $933,212,000 on January 25, 2025, representing an 8.99% increase[65] - The weighted average interest rate for the term loan facility was 6.04% as of April 26, 2025, compared to 6.02% on January 25, 2025[70] - The company has a total borrowing availability under its revolving facility of $513,500,000 as of April 26, 2025, down from $602,500,000 on January 25, 2025[70] Tax and Compensation - The effective income tax rate for the three months ended April 26, 2025, was 22.3%, up from 19.2% for the same period in the previous year[74] - The company realized $2,239,000 in income tax effects related to stock-based compensation for the three months ended April 26, 2025[82] - The company had unrecognized compensation expense related to stock options, RSUs, and target Performance RSUs of $1,100,000, $44,700,000, and $21,600,000, respectively, as of April 26, 2025[83] Operational Metrics - Total accrued insurance claims rose to $102.3 million as of April 26, 2025, compared to $96.5 million on January 25, 2025, an increase of approximately 6.0%[60] - Total lease cost recognized for the three months ended April 26, 2025, was $17.9 million, up from $15.5 million for the same period in 2024, representing a year-over-year increase of about 15.1%[62] - Total lease liabilities under long-term operating leases were $113.1 million as of April 26, 2025, slightly up from $112.8 million on January 25, 2025[62] Stock and Shareholder Activity - The company repurchased 200,000 shares of common stock at an average price of $150.93, totaling $30,200,000 during the three months ended April 26, 2025[76] - Performance RSUs granted during the three months ended April 26, 2025, included 95,514 shares with a weighted average grant date fair value of $161.57[85] - The total number of Performance RSUs outstanding as of April 26, 2025, was 275,236 shares, with a weighted average grant date fair value of $139.63[85] Market and Risk Disclosures - The company operates in one reportable segment, providing specialty contracting services throughout the United States[92] - The company has no material changes to its market risk disclosures, primarily related to interest rate fluctuations[169] - The company has issued $47.5 million in standby letters of credit under its credit agreement as of April 26, 2025[99]

Core Insights - Dycom Industries, Inc. reported a 10.2% year-over-year revenue increase for Q1 FY2026, reaching $1.26 billion, with adjusted EBITDA of $150.4 million and net income of $61 million, surpassing guidance [1] - The company raised its full-year revenue guidance, supported by a record backlog of $8.1 billion, indicating strong demand across telecom and digital infrastructure segments [2][3] Revenue and Backlog - The backlog of $8.1 billion includes $4.7 billion expected to convert to revenue in the next twelve months, showcasing Dycom's ability to secure long-duration projects from large telecom and utility customers [3][4] - The diverse mix of projects, with over 50% from recurring service and maintenance contracts, provides stability amid the shift to multi-year fiber buildouts [3] Market Expansion - Recent strategic wins include a multiyear middle mile fiber award to support AI infrastructure, marking Dycom's entry into hyperscaler markets, thus expanding its total addressable market [5][7] - Demand for fiber build associated with data center and AI investments is accelerating, with significant project work expected to ramp up by FY2027 [6] Margin Improvement - Adjusted EBITDA margin improved by 49 basis points to 11.9% compared to the prior year, with future margin gains anticipated from operating leverage rather than one-time events [8][9] - Management projects full-year net capex at $220–$230 million and focuses on optimizing free cash flow [8] Future Outlook - Contract revenue guidance for FY2026 has been raised to $5.290 billion to $5.425 billion, reflecting a year-over-year increase of 12.5% to 15.4% [11] - Q2 FY2026 forecasts include contract revenues of $1.38 billion to $1.43 billion, adjusted EBITDA of $185 million to $200 million, and diluted EPS of $2.74 to $3.05 [11]