|Bid||39.60 x 900|
|Ask||40.51 x 1000|
|Day's Range||40.20 - 41.64|
|52 Week Range||20.35 - 53.49|
|Beta (3Y Monthly)||2.23|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 11, 2019 - Nov 15, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||58.02|
Editor's note: This story was previously published in June 2019. It has since been updated and republished.Over the last month, solar stocks have really taken it on the chin. But once again, the huge declines are totally unjustified, creating a great buying opportunity for longer-term investors. As I've noted in the past, I'm convinced that JinkoSolar (NYSE:JKS), SunPower (NASDAQ:SPWR) and Daqo New Energy (NYSE:DQ) are great solar stocks to buy.In the past month, JKS stock has tumbled 18%, SPWR stock has sunk 15% and DQ stock has lost 6%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe catalyst for the retreat of solar stocks appears to be a decision by the Federal Energy Regulatory Commission to eliminate "a requirement for utilities to offer long-term fixed prices for qualifying facilities." More specifically, many investors may have sold solar stocks due to dramatic language used by Democratic FERC Commissioner Richard Glick, who claimed the FERC's decision could pose a major threat to the proliferation of renewable energy in the U.S.But I'll give those who have been completely avoiding the news for the last year a tip. The U.S. is going to have a very consequential presidential election in just over a year. Appointed officials are very political, and Glick was trying to dramatize the ramifications of the vote for partisan purposes.Much more trustworthy are the assessments of apolitical Greentech and Colin Smith, the senior solar analyst at Wood Mackenzie Power & Renewables. Greentech said that the vote would have a "muted impact" on U.S. solar. Smith maintained that the decision would affect less than 5% of solar projects under development today.Other much more powerful catalysts will ultimately have a bigger impact on solar stocks. Among these are the increased price competitiveness of solar energy in China and solar energy mandates in the U.S. Below I'll explore how JKS, DQ and SPWR will be positively impacted by these trends. Solar Stocks to Buy: JinkoSolar (JKS)Source: Shutterstock Researchers from the KTH Royal Institute of Technology, Malardalen University and Tsinghua University determined that, in all major Chinese cities, solar energy can be produced more cheaply than electricity from the grid. The research was originally reported in the journal Nature Energy.Meanwhile, the China Electric Power Planning and Engineering Institute has estimated that Chinese electricity demand would surge nearly 6% this year. Higher demand, combined with lower prices, is usually a winning formula for companies.Moreover, JinkoSolar's margins are likely higher in its home market because of lower shipping costs and the absence of any tariffs. Consequently, the coming expansion of solar energy in China should have a tremendously positive impact on Jinko's bottom line. * 10 Hot Stocks Staging Huge Reversals Also interesting is that, as of the end of the second quarter, the holders of JKS stock include some of the biggest names on Wall Street. The list includes names like Bank of America (NYSE:BAC), Citigroup (NYSE:C), Morgan Stanley (NYSE:MS) and UBS (NYSE:UBS). Those big boys are usually not all wrong about a stock. SunPower (SPWR)Source: IgorGolovniov / Shutterstock.com SunPower stock should benefit from four strong trends that are boosting solar energy in the U.S. SPWR will be boosted by the increasing cost-competitiveness of solar energy. But within America, SunPower is also getting huge lifts from state renewable energy mandates and from the increased use of solar energy by companies.Many states have passed laws requiring their utilities to obtain a specific percentage of their electricity from renewable energy. Of course, since solar is a leading renewable energy source, these mandates will cause demand for solar power to surge tremendously. And because SPWR is exempt from America's solar tariffs, it should benefit.For example, California is requiring its utilities to obtain 44% of their electricity from renewable sources by 2024. Plus, the state will require all new homes to be equipped with solar panels. SPWR's strategic partnerships with roofing companies should help it leverage this opportunity.And recently, there's been a sign that other governments controlled by Democrats could follow California's lead. Montgomery County, Maryland is poised to propose that all new homes in the county have solar panels by 2022. There are 1 million people in the county. If the trend spreads, look for SPWR stock and many other solar stocks to really take off. Daqo New Energy (DQ)Source: Shutterstock Like JKS, Daqo New Energy is likely to benefit from the relative cheapness of solar energy in China. Also based in China, DQ sells polysilicon which is used in the construction of solar modules. Among DQ's major customers are JKS and another Chinese solar powerhouse Longi Green Energy.Furthermore, as I reported last month, DQ has said that, "during the current quarter, demand for polysilicon in China will exceed supply, causing polysilicon prices to increase."As of June, many Wall Street heavyweights held meaningful amounts of DQ stock.JKS and DQ should benefit from the low price of solar power in China. SPWR stock is exploiting multiple, ongoing trends in the U.S. and all three names are very cheap. The market caps of JKS stock and DQ stock are both well under $1 billion, while their forward price-to-earnings ratios are a tiny 6 and 5, respectively. SPWR is more expensive, as the market cap of SPWR stock is $1.4 billion and its forward P/E ratio is 53.6. Still, its huge opportunity in the U.S. definitely makes it worth buying.As of this writing, Larry Ramer owned shares of JKS, DQ and SPWR stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back The post 3 Solar Stocks to Buy for a New Day in Solar Energy appeared first on InvestorPlace.
Today we'll evaluate Daqo New Energy Corp. (NYSE:DQ) to determine whether it could have potential as an investment...
For a couple of years, I've repeatedly emphasized that solar equities are great stocks to buy. One of the reasons for my bullishness about solar stocks was the rapid adoption of solar energy by most of the largest countries in the world, including the U.S., India, Japan and China.And in 2019, solar names, including my favorite companies in the space, SunPower (NASDAQ:SPWR), JinkoSolar (NYSE:JKS) and Daqo New Energy (NASDAQ:DQ), have indeed been great stocks to buy, as they have risen tremendously this year. But driven, I believe, largely by the inaccurate statements of a biased insider, solar stocks have slumped recently. I think that this decline represents a great buying opportunity, and that solar names remain great stocks to buy at this point. Solar Stocks Have Risen From the AshesFor the lion's share of 2018, most solar stocks were held back by China's decision to withhold subsidies while it reconsidered its solar policies. But solar was rapidly becoming cheaper than other forms of energy, including in many areas of China, leading me to remain extremely upbeat on solar stocks. California's decision to require all new homes to utilize solar energy, along with rapidly rising renewable mandates by other American states were also very positive for solar stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBy the beginning of 2019, it became clear that China was not giving up on solar energy and that it would resume providing meaningful subsidies to solar panel makers. Meanwhile, the increased financial competitiveness of solar, along with the other positive catalysts I described above, caused the results of many solar companies to dramatically improve.Consequently, many solar stocks have surged dramatically in 2019. For example, SPWR stock, JKS stock and DQ stock -- three names I've strongly recommended in the past -- have jumped 150%, 98% and 106%, respectively, in 2019. Insider Bearishness Has Put a Damper on Solar StocksBut in recent weeks, most solar stocks have decreased meaningfully (although many have risen recently after the attacks on Saudi Arabia caused oil prices to spike dramatically). For example, JKS stock is down 13% from its recent high, while SPWR stock has fallen nearly 20% and DQ stock is down almost 5%.The declines came almost immediately after Eric Luo, the CEO of Chinese solar company GCL System told Reuters that he thought only 20-25 gigawatts of solar energy would be installed in China annually through 2025. Last year, 41 gigawatts of solar were installed in the country. In the first half of 2019, 11.4 gigawatts were installed.However, in May, Beijing said that it had decided to spend $435 million on solar subsidies. The government noted that applications for the subsidies were due on July 1. On July 11, Reuters reported that China had decided to subsidize nearly 23 gigawatts of solar for the rest of this year. Adding that 23 GW figure to the 11.4 GW that had been reportedly installed, in the first half of the year adds up to over 34 GW. That's well over Luo's 20-25 GW estimate.Moreover, Beijing stated that "about 50 GW of solar power projects" will be installed this year, more than double the midpoint of Luo's estimate. And, as will be noted below, both JKS and DQ are extremely upbeat about the outlook for China's solar sector. Finally, multiple news outlets are reporting that, in a large part of the country, solar power is now cheaper than electricity generated by other sources. As a result, in coming years, there will be a meaningful financial incentive to build more solar projects even if government subsidies end.Luo, who was also apparently bearish on solar at the beginning of the year before solar stocks exploded higher, appears to have a bias against the solar panel sector. That's because GCL-Poly, the highly indebted parent company of Luo's GCL System, is looking to sell a 51% stake in another subsidiary, GCL New Energy. The latter subsidiary owns power plants in China.Solar power plant owners would likely benefit from low solar panel demand, which would result in low solar panel prices. Lower panel prices would enable the plant owners to expand their facilities more cheaply. As a result, GCL-Poly could demand a higher price for the stake in its unit if the outlook for solar panel demand is low.Additionally, as Luo himself told Reuters in January, "GCL's vertically integrated business model cushioned it from the downturn in prices as its solar farms benefited from cheaper panels." Consequently, it's possible that GCL would like to weaken DQ stock and JKS stock, with whom it competes, even as it remains unscathed by its bearish statements. * 10 Companies Making Their CEOs Rich In any event, as shown below, the recent quarterly results and statements of SunPower, JinkoSolar and Daqo show that their respective stocks are actually very well-positioned going forward. Solar Stocks to Buy: SunPower (SPWR)On July 1, SunPower increased its full-year EBIDTA guidance, excluding some items, to $120 million-$140 million from its previous level of $90 million-$110 million. The company's earnings-per-share came in at 75 cents, versus a loss per share of 63 cents in the previous quarter and a huge loss per share of $3.17 in the second quarter of 2018.It deployed 622 megawatts, up from 455 NW in the previous quarter and 385 in the same period a year earlier. Revenue from its North American residential business jumped more than 30% versus Q1, and its revenue from businesses deploying solar solutions surged more than 50% versus Q1. SPWR provided guidance for revenue of $1.9 billion-$2.1 billion this year, and it expects its 2019 net loss to come in between $20 million and $10 million.The market cap of SPWR stock is $1.84 billion. As a result, if the company meets its guidance, SPWR will be closing in on profitability, while SPWR stock will have a price-revenue ratio of less than 1.Additionally, the company said that it expects to benefit from growing demand for its storage and services products, while demand for its home-based solar panels in overseas markets is already quickly growing JinkoSolar (JKS)In Q2, JinkoSolar's top line surged 14% year-over-year to over $1 billion, and its gross margin came in at 16.5%, up from just 12% during the same period a year earlier. It shipped nearly 3.4 gigawatts of solar modules, 21% higher than its year-ago total. Its prior guidance was 3.2 gigawatts-3.3 gigawatts. JKS, however, did reaffirm its previous 2019 shipment guidance of 14-15 gigawatts.Importantly, however, JKS expects China to install 40 gigawatts this year, well above Kuo's forecast. The company's gross margins tend to be higher on the modules it sells in China, so its financial results and JKS stock should benefit from strong demand from China in the second half of this year.Moreover, JKS said it expects solar to become as cheap as fossil fuels in many regions of the world this year, and it is benefiting from strong demand in many emerging nations, as well as high sales in the U.S. The forward price-earnings ratio of JKS stock is less than 8, while its market cap is less than $1 billion, making its valuation extremely attractive. Interestingly, as of June 30, Bank of America, Citi, Morgan Stanley and UBS all owned sizable amounts of JKS stock, meaning that they all consider JKS a good stock to buy. I believe that bodes very well for the outlook of JKS stock. Daqo New Energy (DQ)Daqo's non-GAAP EPS beat analysts' average outlook by 16 cents in Q2, although its top line came in slightly below the average estimate. Moreover, its polysilicon sales fell meaningfully in Q2 versus Q1, and many of its other financial metrics dropped significantly last quarter.However, DQ explained that, last quarter, it focused on increasing its production capacity and conducting its annual maintenance. In Q3, DQ expects its total production capacity to jump to 9,200-9,500 megatons of polysilicon, up from just 7,151 MT in Q2. Additionally, DQ predicts that its production cost will fall to $7.50 per KG versus $8.12 per KG in Q2.Similar to JinkoSolar, Daqo predicted that 40 gigawatts to 45 gigawatts of new solar projects will be installed in China in 2019. During the current quarter, demand for polysilicon in China will exceed supply, causing polysilicon prices to increase, DQ believes.That trend will certainly be positive for DQ's results and DQ stock. Trading at a forward P/E ratio of less than 6, DQ stock has a market cap of less than $700 million. Among its key holders as of June 30 were Morgan Stanley, Citi, State Street and Bank of America, showing that they all view DQ as a good stock to buy. As of June 30, Goldman Sachs had a small, $6 million stake in the company.As of this writing, Larry Ramer owned shares of JKS stock, DQ stock and SPWR stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post 3 Solar Stocks to Buy While Investors Underestimate Them appeared first on InvestorPlace.
SHIHEZI, China, Sept. 16, 2019 /PRNewswire/ -- Daqo New Energy Corp. (DQ) ("Daqo New Energy", the "Company" or "we"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced that it had begun pilot production at its new Phase 4A polysilicon production facility in Shihezi, Xinjiang. The Company expects Phase 4A to gradually ramp up to full production capacity and to increase its total annual production capacity to 70,000 MT by the end of this year. Mr. Longgen Zhang, CEO of Daqo New Energy, commented, "We are very excited to have successfully completed the construction and installation of Phase 4A months ahead of schedule.
SHIHEZI, China, Sept. 11, 2019 /PRNewswire/ -- Daqo New Energy Corp. (DQ) ("Daqo New Energy", the "Company" or "we"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced that it has signed a two-year polysilicon supply agreement with JinkoSolar Holding Co., Ltd. ("JinkoSolar") (JKS), one of the largest and most innovative solar module manufacturers in the world. Under the terms of the supply agreement, Daqo New Energy will supply JinkoSolar with 12,000 to 14,400 MT and 15,600 to 21,600 MT of polysilicon during calendar year 2020 and 2021, respectively. Mr. Shihua Su, Chief Marketing Officer of Daqo New Energy, commented, "We're very pleased to sign this two-year supply agreement with JinkoSolar which will further strengthen our long-term strategic relationship.
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Under the supply agreement, Daqo New Energy will supply LONGi with 36,000 MT (inclusive of 18,000 MT in 2020 covered under the Company's existing supply agreement with LONGi), 38,400 MT and 38,400 MT of ultra-high-purity polysilicon in 2020, 2021, and 2022, respectively. As part of the supply agreement, LONGi will make an advance payment to Daqo New Energy.
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SHIHEZI, China, June 7, 2019 /PRNewswire/ -- Daqo New Energy Corp. (DQ) ("Daqo New Energy", the "Company" or "we"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced that its board of directors has approved the appointment of Mr. Qiangmin Zhou, the current Chief Technology Officer, as the Chief Operations Officer of the Company, effective June 7, 2019. First joining the Company in 2007, Mr. Qiangmin Zhou served as the General Manager of the polysilicon business group, the Company's Chief Operations Officer, and then as the Chief Technology Officer of the Company.
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