Dycom Industries (NYSE:DY) Revenue, Earnings Growth to Accelerate

Dycom Industries (NYSE:DY) was added to the "Top Pick" list of FBR Capital, which said they see revenue and earnings growth accelerating in the years ahead.

FBR says, "Over the past six months, numerous fundamental
developments have raised our confidence that Dycom is back on track for accelerating revenue and earnings growth over the coming years, including: (1) two quarters of accelerating backlog growth (12-month backlog is up 16% YOY); (2) a broadening customer base that should provide a catalyst to higher profit margin; (3) recent aggressive share repurchases and debt refinancing; and (4) a recent wireless acquisition, adding a new growth opportunity. Although the current quarter is seasonally the weakest, and as such we are not making a call per se on the January quarter, we believe investors should look through the winter months and aggressively build a position in Dycom to benefit from accelerating growth at an attractive valuation multiple.

"We have raised our FY11 revenue and EPS estimate to $1,050M (from $1,038M) and $0.46 (from $0.45), and introduced FY12 estimates including revenue of $1,146M (+9% YOY) and EPS of $0.70 (+53% YOY)."

FBR Capital reiterates an "Outperform" rating on Dycom Industries, which closed Tuesday at $16.56, gaining $0.69, or 4.35 percent. FBR raised their price target on Dycom from $21 to $24.