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

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In the latest trading session, Daqo New Energy (DQ - Free Report) closed at $67.92, marking a +1.04% move from the previous day. This move outpaced the S&P 500's daily gain of 0.33%.

Heading into today, shares of the solar panel parts maker had lost 26.46% over the past month, lagging the Basic Materials sector's gain of 1.83% and the S&P 500's gain of 4.77% in that time.

Wall Street will be looking for positivity from DQ as it approaches its next earnings report date. In that report, analysts expect DQ to post earnings of $0.89 per share. This would mark year-over-year growth of 93.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $242.8 million, up 43.81% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.23 per share and revenue of $1.1 billion, which would represent changes of +204.07% and +62.29%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DQ. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 5.76% higher. DQ currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, DQ is currently trading at a Forward P/E ratio of 13.25. This valuation marks a discount compared to its industry's average Forward P/E of 17.74.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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