Dycom Industries had a big thump on the stock market last night as their profit rose..However, it was not as much as the analysts had projected causing a fall as much as -20%.. Before "recovering" to -17% this stock has been frequently found in the top 2 of in line of its sector, of course, depending on which week you’d review the position. You might say that it had gotten ahead of itself or rather, the analysts got too excited when the profit positively increased and now, they were overwhelmed with the "blow you out of the water stuff" wherein there had been a wave of profit caving in. Those who follow the 6% buy signal will know that if you have 16 circa stocks in your portfolio and if one stock has fallen by 17% and others have risen by 0.5% to 2% the overall effect on the portfolio is only marginal. That said, this stock is now under review as it has been ranked 84 from the 197 stocks found in its sector. Investing in this stock is very risky since the road ahead to success is yet to be paved by having the best of the best and that means having the top stocks in the top sectors.
Here is a closer look at what Dycom actually does: Dycom, an installer of fiber-optic wiring, has prospered as phone and cable TV companies ready to deploy super-fast, one gigabit-per-second internet services to homes. Dycom digs small trenches where fiber-optic wires are buried, breaks up and repairs sidewalks if needed, or strings the fiber wiring aerially to homes and business via utility poles. Dycom has a lot of big boys as customers, mentioning only a few are AT&T, Verizon, Comcast and Google, as well as Century Link.. Web video is driving the need for faster internet speeds now, since virtual reality is expected to push broadband speeds higher. There has been a plenty of talk about faster, fifth-generation wireless networks BUT fiber optic broadband speeds are presumed to evolve from 1 gigabit -- or 1 billion bits of information -- per second to 10 gigabits per second. "As much as everyone thinks about wireless usage, people are realizing the need for fatter pipes in the ground, and the foundation of that plumbing is fiber," said Jennifer Fritzsche, an analyst at Wells Fargo. Dycom's stock has climbed more than 20% in 2016, with surging revenue from telecom customers driving earnings growth. AT&T has touted plans to expand its GigaPower broadband service for about 12.5 million homes and businesses by the end of 2019. Last January, AT&T signalled that it may target 14 million homes or more from its current 2.2 million. More than 26% of Dycom's first-quarter revenue came from AT&T alone. In the first quarter, AT&T revenue rose 70% to $178 million. If you look at the math, it's suggesting some very intense construction for the years in 2017 and 2018 where Dycom is expected to be benefited.
For now, we hold whilst we review what happens to the stock from here… We are considering what are alternative strategies, what are those potentially better, and where the homes should be for this money.