MYR Group: The Pullback Has Made It Worth Watching But Not Buying Just Yet

David Zhao 47 Followers Follow Summary MYR Group remains a hold despite strong Q2 results and robust data center/grid tailwinds; I seek a further price pullback before upgrading. Q2 EPS surged 86% YoY to $3.17, with revenue up 20% to $1.08B, driven by record C&I segment growth and margin expansion. Backlog hit a record $3.16B (+20% YoY), but a significant portion from large projects will not impact revenue until late 2027. Recent Valley and Comet Electric acquisitions expand data center exposure but raise net debt to $288.5M; MYRG trades at fair value, not a bargain. GoAerials/iStock via Getty Images Investment Thesis Despite strong underlying performance, it’s been difficult to justify a buy rating for MYR Group ( MYRG ) for a long time. The stock has had an excellent year (+55%), achieving a $503 high in June largely off This article was written by David Zhao 47 Followers Follow I'm David Zhao, an economics student at Northwestern with a background in deal sourcing and fundamental research. My interest in the markets began young when I managed to bother my mom into giving up her old stock portfolio. Since then, I've watched the markets closely, with a particular interest in the industrials and defense sectors. Professionally, I've interned for search funds where I contributed to searching, industry research, and financial modeling.Naturally, most of my writing on Seeking Alpha will likely be concentrated on industrials and defense, but a good idea is a good idea, so I may branch out occasionally. I will mostly focus on identifying companies with long-term competitive advantages whose prospects or qualities have gone underappreciated. I lean on a mix of public comps, market knowledge, and general intuition to build out a thesis and figure out entries. Needless to say, I favor pitching longs, though shorts aren't off the table when the setup calls for it.Ultimately, I'm writing on Seeking Alpha to sharpen my research and to get some feedback from the investing community as I work towards a career in asset management or FP&A. I welcome any pushback or discussion in the comments and look forward to sharing and getting better.Outside the context of the portfolio, I enjoy weightlifting, listening to music, and playing strategy games. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MYRG over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.