Investors focused on the Basic Materials space have likely heard of DAQO New Energy (DQ), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
DAQO New Energy is one of 239 individual stocks in the Basic Materials sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. DQ is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DQ's full-year earnings has moved 8.33% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, DQ has gained about 0.02% so far this year. Meanwhile, stocks in the Basic Materials group have lost about 15.33% on average. This shows that DAQO New Energy is outperforming its peers so far this year.
Looking more specifically, DQ belongs to the Chemical - Specialty industry, which includes 33 individual stocks and currently sits at #142 in the Zacks Industry Rank. This group has lost an average of 14.37% so far this year, so DQ is performing better in this area.
Investors in the Basic Materials sector will want to keep a close eye on DQ as it attempts to continue its 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
To read this article on Zacks.com click here.