Dycom Industries saw a welcome improvement to its Relative Strength (RS) Rating on Monday, with an increase from 87 to 91.
IBD's unique rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
History reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves.
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Dycom Industries is now considered extended and out of buy range after clearing a 184.15 buy point in a third-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
In terms of fundamentals, the company has posted two quarters of rising earnings growth. Revenue growth has also moved higher during the same period. The company is expected to release its next quarterly numbers on or around Nov. 20.
Dycom Industries holds the No. 1 rank among its peers in the Telecom-Infrastructure industry group. Ubiquiti and Inseego are also among the group's highest-rated stocks.
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