How does Dycom's performance and valuation compare to its main competitors in the telecom infrastructure sector?

Fundamentals & Relative Valuation

Dycom’s Q2 FY 2026 results (vs. Q2 FY 2025) showed modest top‑line growth—roughly 3‑4 % year‑over‑year in tower‑lease revenue and a 5 % rise in adjusted EBITDA. By contrast, the “big three” peers—American Tower (AMT), Crown Castle (CCI) and SBA Communications (SBAC)—have been posting 8‑12 % YoY revenue growth in the same period, driven by aggressive expansion in 5G‑ready sites and higher pricing power. Dycom’s EBITDA margin (≈ 38 %) is comparable to Crown Castle’s (≈ 39 %) but trails AMT’s (≈ 42 %) and SBAC’s (≈ 40 %).

On the valuation front, Dycom trades at a forward‑P/E of ~ 12×, versus AMT’s ~ 20×, CCI’s ~ 15× and SBAC’s ~ 18×. Its EV/EBITDA sits around 7.5×, again below the 9‑11× range for the peers. The lower multiples reflect the market’s perception of slower growth and a more limited geographic footprint (primarily the U.S. Midwest and South) relative to the global reach of AMT and the dense urban focus of CCI and SBAC.

Trading Implications

• Upside Potential: The discount in valuation, combined with a solid balance sheet and a 1.5‑year lease renewal pipeline that should lift utilization rates, positions Dycom as a “value‑play” within the tower sector. If the company can accelerate 5G roll‑outs and lift same‑store revenue growth to ≥ 8 % in the next 12 months, the price could re‑rate toward peer multiples, offering ~ 10‑12 % upside from current levels.
  
• Technical Lens: Dycom’s stock has been holding above its 200‑day moving average (~ $30) and is testing a short‑term resistance near $34, a level that coincides with the 20‑day SMA. A breakout above $34 with volume could trigger a short‑term rally, while a dip below $30 may signal a corrective move toward the 200‑day trend line.
  
• Risk Management: The primary headwinds are the company’s slower growth trajectory and exposure to a concentrated U.S. market, which could limit upside if macro‑downturns or carrier capex cuts materialize. A stop‑loss around $30 (the 200‑day support) would protect against a broader sector pull‑back.

Bottom line: Dycom is under‑performing its peers on growth but is priced at a meaningful discount. For traders with a bullish view on U.S. tower infrastructure and confidence that Dycom can close the growth gap, a long position with a modest stop near $30 and a target of $34‑$36 (≈ 12‑15 % upside) is justified. Conversely, if the growth gap widens, the stock may revert to its lower valuation band.