|Bid||50.93 x 800|
|Ask||50.96 x 800|
|Day's Range||50.49 - 51.54|
|52 Week Range||20.35 - 53.49|
|Beta (3Y Monthly)||2.27|
|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|
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.
As an investor, I look for investments which do not compromise one fundamental factor for another. By this I mean, I...
Editor's note: This story was previously published in June 2019. It has since been updated and republished.The fourth-quarter results of three solar energy companies -- Jinko Solar (NYSE:JKS), SunPower (NASDAQ:SPWR), and Daqo New Energy (NYSE:DQ), show that they benefited from multiple, powerful positive catalysts in Q4.These positive catalysts have helped push these solar stocks higher so far this year. In 2019, JKS stock has soared 77%, SPWR stock and DQ stock have each gained about 50%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMoreover, the companies' results and guidance indicate that their stocks should continue to advance as the ongoing, upbeat trends strengthen this year, boosting solar stocks.Among these many trends are stabilizing selling prices of solar energy products, continued decreases in the production costs of these products, stabilizing demand in China, the advent of cheaper batteries and higher-margin solar products, powerful demand drivers in the U.S. and demand increases in developing markets. * 10 Stocks That Should Be Every Young Investor's First Choice In light of these powerful, positive trends, investors should buy Jinko Solar stock, SunPower stock, and Daqo New Energy stock.Meanwhile, the valuations of all three solar stocks remain extraordinarily low, making their overall outlook extremely attractive. Jinko Solar (JKS)Q1, Jinko's revenue dropped 30% sequentially but still was up nearly 20% year-over-year. Its gross margin rose to 16.6%, excluding payments from Chinese governments, up from 14.7% in Q4. Q2 numbers are slated for release Aug. 30 and it has added more than 78% YTD.Source: Shutterstock Going forward, Jinko expects to benefit from new Chinese subsidies for both utility and residential projects. Additionally, the company is optimistic that Beijing will make more of its subsidy payments on time than in the past.And in comparison with the past, a higher percentage of solar projects in China will be cheaper than other types of energy, such as coal and natural gas, without subsidies JKS added.In the U.S., JinkoSolar is experiencing strong demand because of a recently extended 30% investment tax credit for solar projects. In order to qualify for the tax credit, projects must be launched by 2020, so developers are looking to get their projects off the ground quickly, JKS reported.The company is also seeing strong demand from Europe and developing countries in Southeast Asia, the Middle East, and South America. Given all of the strong demand and supportive government policies, JKS expects to ship 30% more modules this year than in 2018.And importantly, due partly to the strong demand for its premium solar products, JKS expects its average selling prices to be stable this year. A 30% increase in module sales, along with flat average sales prices, should produce very good results for JKS in 2019, leading to continued gains for JKS stock. SunPower (SPWR)SunPower's Q1 results were mostly weaker compared with the same period a year earlier, but they were generally much better than the company's Q4 earnings. This year's Q2 earnings were a huge disappointment, though.Source: via SunPowerOn the upside, SPWR identified multiple, strong positive catalysts that should boost the company's results and SPWR stock in the near, medium and longer terms.SPWR's Q2 revenue was $436.3 million, versus $449.1 million during the same period a year earlier. Its net loss per share of SunPower stock came in at $0.42, versus $0.01 a year earlier.SPWR expects positive trends to continue, driven by share gains in houses and businesses as it produces more lower-cost solar panels. Also likely to help SPWR stock a great deal going forward is the California mandate that all new homes include solar energy panels.This is especially true since the company is by far the market share leader in that state. Finally, SPWR expects to benefit over the longer term from selling its energy-storage solutions and other services to new and existing clients. * 7 Retail Stocks to Buy That Are Down in 2019 In the second half of 2019, SPWR expects to report break-even operating cash flow, and it says that it will be well-positioned "for sustainable future profits" heading into 2020. Daqo New Energy (DQ)Daqo's Q2 results weren't anything to write home about with misses on both revenue projections and earnings expectations.Source: Shutterstock Daqo's Q2 revenue was $65.96 million which missed estimates by more than 5%.DQ expects to sell a higher percentage of premium products this year, and it anticipates that strong demand, driven by more favorable Chinese policies, cheaper solar module prices, and powerful overseas demand, will help keep the selling prices of its polysilicon little changed.Additionally, DQ says that many of its competitors whose production prices are not as low are being pushed out of business, keeping supply expansion under control. So DQ and DQ stock, like JKS, is benefiting from the combination of lower production prices, stable prices, and strengthening demand.As of this writing, Larry Ramer owned shares of JKS stock, SPWR stock, and DQ 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.
Daqo (DQ) delivered earnings and revenue surprises of -81.82% and -5.50%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
SHIHEZI, China , Aug. 14, 2019 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a leading manufacturer of high-purity polysilicon ...
On Wednesday, August 14, Daqo New Energy (NYSE: DQ ) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release. Earnings and Revenue Wall ...
Daqo (DQ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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.
SHIHEZI, China , Aug. 1, 2019 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading manufacturer of high-purity polysilicon for the global ...
Daqo (DQ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Anyone researching Daqo New Energy Corp. (NYSE:DQ) might want to consider the historical volatility of the share...
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put...
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.
Daqo (DQ) delivered earnings and revenue surprises of 145.45% and 0.50%, respectively, for the quarter ended March 2019. Do the numbers hold clues to what lies ahead for the stock?
The Wanzhou, China-based company said it had net income of 48 cents per share. Earnings, adjusted for one-time gains and costs, came to 81 cents per share. The solar panel parts maker posted revenue of ...
SHIHEZI, China , May 21, 2019 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a leading manufacturer of high-purity polysilicon ...