Dycom Industries (DY) Surged on a Mix of Growth Drivers

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a risk-off environment from the previous quarter, but later regained momentum driven by broad-based elements. In the second quarter, the strategy delivered a return of 3.25% net of fees (3.41% gross of fees) underperforming the 8.50% total return of the Russell 2000 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Dycom Industries, Inc. (NYSE:DY). Headquartered in Palm Beach Gardens, Florida, Dycom Industries, Inc. (NYSE:DY) provides contracting services to the telecommunications infrastructure and utility industries. The one-month return of Dycom Industries, Inc. (NYSE:DY) was 6.36%, and its shares gained 45.73% of their value over the last 52 weeks. On July 22, 2025, Dycom Industries, Inc. (NYSE:DY) stock closed at $252.68 per share, with a market capitalization of $7.309 billion.

Aristotle Capital Small Cap Equity Strategy stated the following regarding Dycom Industries, Inc. (NYSE:DY) in its second quarter 2025 investor letter:

“Dycom Industries, Inc. (NYSE:DY), a provider of engineering and construction services to the telecommunications and cable television industries, benefitted from continued growth in its core business, funding tailwinds, and expanding margins as demand for wireline services continues to grow. We maintain our position as we believe the company remains well positioned for longer-term growth alongside secular trends for expanding fiber deployments to support faster broadband connectivity speeds and opportunities to deploy fiber to rural or underserved areas across the country.”

A 360 degree view of a partially constructed tower, featuring various pieces of equipment and constructionmaterials.

Dycom Industries, Inc. (NYSE:DY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Dycom Industries, Inc. (NYSE:DY) at the end of the first quarter, which was 37 in the previous quarter. In the fiscal first quarter of 2026, Dycom Industries, Inc. (NYSE:DY) reported $1.259 billion in revenue, reflecting a 10.2% increase over Q1 2025. While we acknowledge the risk and potential of Dycom Industries, Inc. (NYSE:DY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Dycom Industries, Inc. (NYSE:DY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Dycom Industries, Inc. (NYSE:DY) and shared best Russell 2000 stocks that have garnered recommendations from Wall Street analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.