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

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Daqo New Energy (DQ - Free Report) closed the most recent trading day at $77.20, moving +3.61% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.07%.

DQ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.89, up 93.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $242.8 million, up 43.81% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.11 per share and revenue of $1.16 billion. These totals would mark changes of +255.23% and +71.12%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for DQ. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 16.89% higher within the past month. DQ is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that DQ has a Forward P/E ratio of 12.19 right now. This valuation marks a discount compared to its industry's average Forward P/E of 18.75.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% 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.

To follow DQ in the coming trading sessions, be sure to utilize Zacks.com.


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