Does Dycom Industries (USA Stocks:DY) create value for investors?

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Aina Ster .  Story
DY Stock  USD 94.99  2.08  2.24%   
Aina Ster
By Aina Ster
Macroaxis Story
This article will break down few interesting ideas for the current Dycom Industries investors and investors who consider a position in the company. We will inspect if investors should continue to be optimistic for the company outlook.
Published over three weeks ago
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Reviewed by Vlad Skutelnik

The company has a beta of 1.0792. Let's try to break down what Dycom's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Dycom Industries will likely underperform. The beta indicator helps investors understand whether Dycom Industries moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Dycom deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Dycom Industries. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Dycom Industries

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Dycom Industries' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Dycom Industries in the context of predictive analytics.
Hype
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Intrinsic
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7 Analysts
Consensus
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Dycom Industries. Your research has to be compared to or analyzed against Dycom Industries' peers to derive any actionable benefits. When done correctly, Dycom Industries' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Dycom Industries.

How important is Dycom Industries's Liquidity

Dycom Industries financial leverage refers to using borrowed capital as a funding source to finance Dycom Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dycom Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Dycom Industries's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Dycom Industries, but it might be worth checking our own buy vs. sell analysis

Acquisition by Richard Vilsoet of 3138 shares of Dycom Industries subject to Rule 16b-3

Legal trades by Dycom Industries insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Dycom insider trading alert for grant of restricted stock units by Richard Vilsoet, Vice President Secretary, on 24th of January 2023. This event was filed by Dycom Industries Inc with SEC on 2013-12-17. Statement of changes in beneficial ownership - SEC Form 4. Richard Vilsoet currently serves as vp, general counsel and corporate secretary of Dycom Industries [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

The small slide in market price for the last few months could raise concerns from investors as the firm is trading at a share price of 84.21 on 495,360 in volume. The company directors and management did not add much value to Dycom Industries investors in February. However, diversifying your holdings with Dycom Industries or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.08. The current volatility is consistent with the ongoing market swings in February 2023 as well as with Dycom Industries unsystematic, company-specific events.

Shares Breakdown


Possible April turnaround of Dycom?

Current Treynor Ratio is up to -0.09. Price may slide again. Dycom Industries exhibits very low volatility with skewness of -0.06 and kurtosis of -0.6. However, we advise investors to further study Dycom Industries technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dycom Industries' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dycom Industries' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Dycom Industries

While some other entities within the engineering & construction industry are still a little expensive, even after the recent corrections, Dycom Industries may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of Dycom nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Dycom Industries.

Editorial Staff

Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Dycom Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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