Daqo New Energy (DQ) Dips More Than Broader Markets: What You Should Know
Daqo New Energy (DQ) closed at $45.13 in the latest trading session, marking a -1.42% move from the prior day. This change lagged the S&P 500's daily loss of 0.58%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%.
Coming into today, shares of the solar panel parts maker had lost 16.67% in the past month. In that same time, the Basic Materials sector lost 1.31%, while the S&P 500 gained 2%.
Daqo New Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect Daqo New Energy to post earnings of $4.95 per share. This would mark a year-over-year decline of 29.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $886.1 million, down 30.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.28 per share and revenue of $3.93 billion, which would represent changes of -19.2% and -14.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Daqo New Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.84% lower. Daqo New Energy is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Daqo New Energy is currently trading at a Forward P/E ratio of 2.37. This valuation marks a discount compared to its industry's average Forward P/E of 16.47.
The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DAQO New Energy Corp. (DQ) : Free Stock Analysis Report
