Daqo New Energy (DQ) closed at $64.81 in the latest trading session, marking a +0.59% move from the prior day. This move outpaced the S&P 500's daily loss of 0.41%.
Prior to today's trading, shares of the solar panel parts maker had gained 0.51% over the past month. This has outpaced the Basic Materials sector's loss of 2.65% and the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from Daqo New Energy as it approaches its next earnings release. On that day, Daqo New Energy is projected to report earnings of $6.87 per share, which would represent year-over-year growth of 80.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.1 billion, up 88.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $27.33 per share and revenue of $4.2 billion, which would represent changes of +177.46% and +150.34%, respectively, from the prior year.
Any recent changes to analyst estimates for Daqo New Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Daqo New Energy is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Daqo New Energy's current valuation metrics, including its Forward P/E ratio of 2.36. This represents a discount compared to its industry's average Forward P/E of 13.28.
The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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