11 Best Russell 2000 Stocks to Buy According to Wall Street Analysts

2. Dycom Industries, Inc. (NYSE:DY)

Upside potential: 50.40%

No of hedge funds: 37

Headquartered in Florida, Dycom Industries, Inc. (NYSE:DY) offers specialty contracting services to the telecommunications and utility sectors, particularly for broadband infrastructure development. Their engineering, construction, and maintenance services have gathered a notable customer base across North America. The long-term client relationships with major telecom providers provide a competitive edge over peers like MasTec and Quanta Service. Aligning with national broadband expansion initiatives, the business operations of Dycom Industries, Inc. (NYSE:DY) can support large-scale fiber-optic network rollouts across various geographies.

EPS growth of 34.51% over the past five years indicates that the ongoing infrastructure expansion has considerably benefited the company. In the last quarter of 2024, the company generated revenue of $1.085 billion, nearly 14% higher than the previous year. During the period, Dycom Industries, Inc. (NYSE:DY) also demonstrated its commitment to increasing shareholder returns through a new $150 million stock repurchase program. The high revenue concentration from the company’s top 5 customers presents a risk. However, in 2025, the dependency was reduced from 66% to 55% through diversification of the customer base. Also, the company has a substantial backlog of $4.6 billion, which is expected to be completed by the end of 2025.

With 37 hedge funds on board at the end of Q4 2024, Dycom Industries, Inc. (NYSE:DY) benefits from high institutional interest. The Buy rating from the analysts provided, alongside a 50.40% upside forecast, turns the company into one of the top Russell 2000 stocks.