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

·3 min read

In the latest trading session, Daqo New Energy (DQ) closed at $64.19, marking a -1.17% move from the previous day. This move lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.09%.

Prior to today's trading, shares of the solar panel parts maker had lost 5.51% over the past month. This has lagged the Basic Materials sector's gain of 2.82% and the S&P 500's loss of 1.14% in that time.

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 $6.87 per share. This would mark 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $27.33 per share and revenue of $4.2 billion. These totals would mark changes of +177.46% and +150.34%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Daqo New Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Daqo New Energy is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Daqo New Energy's current valuation metrics, including its Forward P/E ratio of 2.38. For comparison, its industry has an average Forward P/E of 13.77, which means Daqo New Energy is trading at a discount to the group.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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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