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Is DAQO New Energy (DQ) Stock Outpacing Its Basic Materials Peers This Year?

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has DAQO New Energy (DQ - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

DAQO New Energy is one of 239 companies in the Basic Materials group. The Basic Materials group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. DQ is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for DQ's full-year earnings has moved 39.97% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, DQ has gained about 87.01% so far this year. In comparison, Basic Materials companies have returned an average of 5.88%. This shows that DAQO New Energy is outperforming its peers so far this year.

To break things down more, DQ belongs to the Chemical - Specialty industry, a group that includes 35 individual companies and currently sits at #176 in the Zacks Industry Rank. On average, stocks in this group have gained 5.47% this year, meaning that DQ is performing better in terms of year-to-date returns.

Investors with an interest in Basic Materials stocks should continue to track DQ. The stock will be looking to continue its solid performance.


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