Daqo New Energy (DQ) closed at $51.88 in the latest trading session, marking a +0.21% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Prior to today's trading, shares of the solar panel parts maker had lost 27.97% over the past month. This has lagged the Basic Materials sector's loss of 12.31% and the S&P 500's loss of 10.4% in that time.
Investors will be hoping for strength from Daqo New Energy as it approaches its next earnings release. The company is expected to report EPS of $6.87, up 80.31% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.1 billion, up 88.59% from the year-ago period.
DQ's full-year Zacks Consensus Estimates are calling for earnings of $27.33 per share and revenue of $4.2 billion. These results would represent year-over-year changes of +177.46% and +150.34%, respectively.
Any recent changes to analyst estimates for Daqo New Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate remained stagnant within the past month. Daqo New Energy currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Daqo New Energy's current valuation metrics, including its Forward P/E ratio of 1.89. This represents a discount compared to its industry's average Forward P/E of 12.28.
The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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