雅虎香港財經 Here's How Much a $1000 Investment in Dycom Industries Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Dycom Industries (DY) ten years ago? It may not have been easy to hold on to DY for all that time, but if you did, how much would your investment be worth today?
Dycom Industries' Business In-Depth
With that in mind, let's take a look at Dycom Industries' main business drivers.
Based in North America, Dycom Industries Inc. is a specialty contracting firm operating in the telecom industry. The company provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies. Dycom provides specialty constructing services to the following customers:
Telecommunications (contributing 89.6% to fiscal 2024 contract revenues): Dycom provides integrated services for designing aerial, underground and buried fiber optic, copper, and coaxial cable systems for telecom, cable and multiple system operators. It also equips telecom providers with engineering services for designing concept boxes and terminals for various activities. For the wireless network, the company’s service package comprises tower construction, installation of lines and antenna, constructing foundation and equipment pad, fabrication for required equipment and materials as well as testing services at the site.
Underground Facility Locating (7.1%): The company provides underground facility-locating services to a number of utility companies to avoid damage of the underground facilities like telephone, cable television, power, water, sewer and gas lines. Dycom’s expertise in these not only minimizes the damage but also controls its impact on people in the surrounding areas.
Electric and Gas Utilities (3.3%): Dycom also offers services to electric and gas utility companies for both construction and maintenance of gas pipelines and power distribution network. These services are generally provided on a stand-alone basis. However, at times the company is required to provide comprehensive services for deploying both telecom and electric infrastructure at new constructions. Dycom is also adept in installation and maintenance of natural gas transmission networks.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Dycom Industries, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2014 would be worth $5,495.92, or a 449.59% gain, as of June 19, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 180.38% and the price of gold went up 69.74% over the same time frame.
Looking ahead, analysts are expecting more upside for DY.
Dycom's shares have outperformed its industry in the year-to-date period. Its first-quarter fiscal 2025 contract revenues and earnings increased on a year-over-year basis, mostly driven by strong contributions from acquisitions. Dycom is seeing significant opportunities, as some major industry participants are deploying wireline networks to offer bandwidth-enabling 1-gigabit speeds using 5G technologies. Also, it is benefiting from continuous contract flow despite prevailing market uncertainties. Its backlog at first-quarter fiscal 2025-end increased year over year. Although lower contributions from three of its top five customers have put pressure on the top line to some extent, strong demand for Lumen, Charter and all other customers is encouraging. That said, cyclical nature of business and currency exchange rates are major risks.
The stock is up 9.03% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2024. The consensus estimate has moved up as well.
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Dycom Industries, Inc. (DY) : Free Stock Analysis Report
