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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 at $60.84 in the latest trading session, marking a +0.35% move from the prior day. This change outpaced the S&P 500's 0.1% gain on the day.

Coming into today, shares of the solar panel parts maker had lost 11.19% in the past month. In that same time, the Basic Materials sector lost 1.39%, while the S&P 500 gained 1.53%.

DQ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.29, up 10866.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $462 million, up 246.02% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.73 per share and revenue of $1.57 billion, which would represent changes of +465.7% and +132.49%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DQ. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 11.2% higher within the past month. DQ is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note DQ's current valuation metrics, including its Forward P/E ratio of 6.23. Its industry sports an average Forward P/E of 18.35, so we one might conclude that DQ is trading at a discount comparatively.

The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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