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.
Does Dycom Industries (USA Stocks:DY) create value for investors?
 | 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.
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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.
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 toward taking a position in Dycom Industries.
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 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, anticipate that 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.
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. Financial leverage can amplify the potential profits to Dycom Industries' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Dycom Industries' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Dycom Industries's total debt and its cash.
Dycom Industries Gross Profit
Dycom Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Dycom Industries previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Dycom Industries Gross Profit growth over the last 10 years. Please check Dycom Industries' gross profit and other fundamental indicators for more details.
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