Dycom Industries (DY) Surges 17% on $1.95B Data Center Acquisition: Is This the Start of a New Bull Run?

Summary
• Dycom Industries (DY) rockets 17.26% to $347.325, hitting its 52-week high of $349.99
• Announces $1.95B acquisition of Power Solutions, a premier data center electrical contractor
• Intraday volume surges to 193,351 shares, 0.68% of its float

The stock’s explosive move follows a landmark acquisition that positions Dycom as a major player in the surging data center infrastructure sector. With Power Solutions’ $1B revenue backlog and 2,800 skilled workers, the deal promises immediate EBITDA accretion and long-term growth. Technical indicators and options activity suggest momentum is far from over.

Data Center Acquisition Ignites Earnings and Growth Optimism
Dycom’s 17.26% surge stems from its $1.95 billion acquisition of Power Solutions, a Mid-Atlantic electrical contractor with 90% of revenue tied to data centers. The deal adds $1B in annual revenue, a $1B backlog, and 2,800 skilled workers, immediately boosting EBITDA margins and free cash flow. Management highlighted Power Solutions’ 15% CAGR growth trajectory and strategic location in the U.S.’s largest data center hub. The acquisition’s accretive nature and alignment with AI-driven infrastructure demand have triggered a re-rating of Dycom’s valuation.

Engineering & Construction Sector Gains Momentum as Dycom Leads
The Engineering & Construction sector, led by Fluor (FLR) up 1.39%, is rallying on infrastructure spending optimism. Dycom’s 17% move outpaces peers, reflecting its unique positioning in high-growth data center services. While broader construction activity faces macroeconomic headwinds, Dycom’s acquisition taps into a $20–25% CAGR data center market, insulated from general sector volatility.

Options and ETFs to Capitalize on Dycom’s Breakout Momentum
• MACD: 2.21 (above signal line 1.85), RSI: 55.58 (neutral), 200D MA: $227.95 (far below current price)
• Bollinger Bands: Price at $347.33, well above upper band of $297.47

Dycom’s technicals signal a strong short-term bullish trend. Key resistance lies at $349.99 (52-week high), with a 30D support range of $286.08–$286.47. The 200D MA at $227.95 suggests a long-term upward trajectory. Aggressive bulls should target $349.99 for a breakout confirmation.

Top Options Picks:
• DY20251219C350 (Call, $350 strike, Dec 19 expiry):
- IV: 38.22% (high volatility)
- Leverage: 29.16% (extreme gearing)
- Delta: 0.44 (moderate sensitivity)
- Theta: -0.426 (rapid time decay)
- Gamma: 0.0104 (modest price sensitivity)
- Turnover: 26,509 (liquid)
- Payoff at 5% upside: $18.66/share (350 strike) → $18.66 profit
- Why it stands out: High leverage and liquidity make it ideal for a short-term breakout play.
• DY20251219C360 (Call, $360 strike, Dec 19 expiry):
- IV: 21.83% (moderate)
- Leverage: 128.15% (aggressive)
- Delta: 0.22 (low sensitivity)
- Theta: -0.1999 (slow decay)
- Gamma: 0.0137 (higher sensitivity)
- Turnover: 914 (adequate)
- Payoff at 5% upside: $28.66/share (360 strike) → $28.66 profit
- Why it stands out: High leverage and gamma offer outsized returns if the breakout accelerates.

Action: Aggressive bulls should prioritize DY20251219C350 for a $349.99 breakout. Conservative traders may use DY20251219C360 as a leveraged long if the 52-week high holds.

Backtest Dycom Industries Stock Performance
Dycom Industries (DY) experienced a significant intraday surge of 17% from February 2022 to November 2025. Let's analyze the stock's performance during this period:1. Earnings Performance: Dycom's earnings have been robust, with Q3 performance exceeding estimates. The company reported a GAAP EPS of $1.80, beating expectations by $0.50. Net profit nearly doubled from $28.7 million to $54 million.2. Revenue Growth: Revenue grew by 21.8% year-over-year to $1.04 billion in Q3. Year-to-date contract revenues increased by 22.2% organically, reaching $2.89 billion after excluding storm restoration services.3. Future Outlook: Dycom expects contract revenues for the final quarter of 2022 to increase by mid- to high-single digits. Non-GAAP Adjusted EBITDA as a percentage of contract revenues is expected to increase modestly.4. Stock Price Movement: Despite the positive earnings and revenue growth, Dycom's stock price sank by 15% after the Q3 performance beat. This suggests a potential market correction or revaluation, possibly due to macroeconomic uncertainties or market conditions.5. Analyst Expectations: Analysts expect an EPS of $0.32 and revenue of $851.54 million for the final quarter of 2022, indicating a continued growth trajectory.In conclusion, Dycom Industries has shown strong earnings and revenue growth, with positive expectations for the future. However, the recent market correction in stock price may present a buying opportunity for investors looking to capitalize on the company's growth potential.

Dycom’s Data Center Bet: A High-Velocity Trade with Long-Term Legs
Dycom’s acquisition of Power Solutions is a catalyst-driven move with both immediate and structural upside. The stock’s 17% surge reflects optimism about EBITDA accretion and AI-driven data center demand. Technicals and options activity confirm momentum, with the 52-week high at $349.99 as the next critical level. Watch Fluor (FLR) up 1.39% for sector validation. Aggressive traders should target $349.99 for a breakout confirmation, while long-term investors can position for the 2026 integration milestones. Act now: Buy DY20251219C350 for a high-leverage play on the breakout.