Strong On High Volume: Dycom Industries (DY)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Dycom Industries as such a stock due to the following factors:
- DY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.8 million.
- DY has traded 73,520 shares today.
- DY is trading at 4.26 times the normal volume for the stock at this time of day.
- DY is trading at a new high 5.18% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on DY:
Dycom Industries, Inc. provides specialty contracting services in the United States and Canada. DY has a PE ratio of 24. Currently there are 8 analysts that rate Dycom Industries a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Dycom Industries has been 654,700 shares per day over the past 30 days. Dycom has a market cap of $2.3 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.52 and a short float of 15.4% with 9.88 days to cover. Shares are down 0.3% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Dycom Industries as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 26.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 70.37% and other important driving factors, this stock has surged by 53.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- DYCOM INDUSTRIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DYCOM INDUSTRIES INC increased its bottom line by earning $2.41 versus $1.15 in the prior year. This year, the market expects an improvement in earnings ($3.88 versus $2.41).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 64.0% when compared to the same quarter one year prior, rising from $9.43 million to $15.47 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Construction & Engineering industry and the overall market, DYCOM INDUSTRIES INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- You can view the full Dycom Industries Ratings Report.
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