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Daqo New Energy (DQ) Gains As Market Dips: What You Should Know

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In the latest trading session, Daqo New Energy (DQ) closed at $85.72, marking a +0.12% move from the previous day. This move outpaced the S&P 500's daily loss of 0.09%.

Coming into today, shares of the solar panel parts maker had gained 21.31% in the past month. In that same time, the Basic Materials sector gained 9.87%, while the S&P 500 gained 5.45%.

Investors will be hoping for strength from DQ as it approaches its next earnings release. On that day, DQ is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 93.48%. Meanwhile, our latest consensus estimate is calling for revenue of $242.8 million, up 43.81% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.75 per share and revenue of $1.12 billion. These totals would mark changes of +234.3% and +65.18%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for DQ. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 has moved 10.01% higher within the past month. DQ is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, DQ currently has a Forward P/E ratio of 14.88. Its industry sports an average Forward P/E of 19.26, so we one might conclude that DQ is trading at a discount comparatively.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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