Dycom Industries, Inc. continues its bullish trend in order to test new highest level.
From a fundamental viewpoint, the company is strong. It has a reasonable valuation with an EV/Sales ratio of 1.1x. The Thomson Reuters consensus revised recently upward EPS estimates of the company for the current year. The great business predictability emphasize the quality of this investment in the mid-term.
Technical patterns are in the green: prices have been up for several months. The movement should continue in the coming trading sessions. The 20-days moving average should help to reach the USD 56.8 mid term resistance. In order to reach our goal, the stock should breakout the trendline which is currently tested.
Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position above the trendline (in blue). The first target price is the USD 56.8 resistance. A stop loss will be placed under the USD 48 (20-day moving average) threshold that would invalidate this trading strategy.
Dycom Industries, Inc. is a provider of specialty contracting services. The Company supplies telecommunications providers with a portfolio of services, such as program management, planning, engineering and design, aerial, wireless construction, maintenance, and fulfillment services. It provides underground facility locating services for utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities. It also supplies the expertise, labor, equipment, and tools necessary to provide services to its customers. It provides engineering services to telecommunications providers, such as planning and design of aerial, underground, and buried fiber optic, copper, and coaxial cable systems that extend from the telephone company hub location, or cable operator headend, to a consumers' home or businesses. It provides construction and installation services, including the placement and splicing of fiber, copper, and coaxial cables.
DYCOM INDUSTRIES, INC. 
