U.S. markets open in 4 hours 32 minutes
  • S&P Futures

    4,235.25
    +25.50 (+0.61%)
     
  • Dow Futures

    33,482.00
    +178.00 (+0.53%)
     
  • Nasdaq Futures

    13,402.25
    +91.00 (+0.68%)
     
  • Russell 2000 Futures

    1,991.10
    +14.80 (+0.75%)
     
  • Crude Oil

    94.04
    -0.30 (-0.32%)
     
  • Gold

    1,802.30
    -4.90 (-0.27%)
     
  • Silver

    20.30
    -0.05 (-0.27%)
     
  • EUR/USD

    1.0305
    -0.0020 (-0.20%)
     
  • 10-Yr Bond

    2.8880
    0.0000 (0.00%)
     
  • Vix

    20.02
    +0.28 (+1.42%)
     
  • GBP/USD

    1.2178
    -0.0025 (-0.20%)
     
  • USD/JPY

    133.2390
    +0.2400 (+0.18%)
     
  • BTC-USD

    23,950.09
    -532.93 (-2.18%)
     
  • CMC Crypto 200

    569.30
    -5.44 (-0.95%)
     
  • FTSE 100

    7,510.79
    +44.88 (+0.60%)
     
  • Nikkei 225

    28,546.98
    +727.65 (+2.62%)
     

Are Basic Materials Stocks Lagging DAQO New Energy (DQ) This Year?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Daqo New Energy (DQ) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.

Daqo New Energy is one of 241 companies in the Basic Materials group. The Basic Materials group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Daqo New Energy is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DQ's full-year earnings has moved 34.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, DQ has gained about 57.8% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 5.4% on average. This means that Daqo New Energy is performing better than its sector in terms of year-to-date returns.

Another Basic Materials stock, which has outperformed the sector so far this year, is Intrepid Potash (IPI). The stock has returned 41.8% year-to-date.

Over the past three months, Intrepid Potash's consensus EPS estimate for the current year has increased 68.2%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Daqo New Energy belongs to the Chemical - Specialty industry, which includes 33 individual stocks and currently sits at #72 in the Zacks Industry Rank. Stocks in this group have lost about 15.3% so far this year, so DQ is performing better this group in terms of year-to-date returns.

In contrast, Intrepid Potash falls under the Fertilizers industry. Currently, this industry has 7 stocks and is ranked #21. Since the beginning of the year, the industry has moved +30.2%.

Investors interested in the Basic Materials sector may want to keep a close eye on Daqo New Energy and Intrepid Potash as they attempt to continue their solid performance.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
DAQO New Energy Corp. (DQ) : Free Stock Analysis Report
 
Intrepid Potash, Inc (IPI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research