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

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Daqo New Energy (DQ - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.

Daqo New Energy is a member of the Basic Materials sector. This group includes 241 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Daqo New Energy is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for DQ's full-year earnings has moved 43.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that DQ has returned about 15.2% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 3.2% on a year-to-date basis. This means that Daqo New Energy is outperforming the sector as a whole this year.

Another stock in the Basic Materials sector, Intrepid Potash (IPI - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 50.6%.

In Intrepid Potash's case, the consensus EPS estimate for the current year increased 80.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Daqo New Energy is a member of the Chemical - Specialty industry, which includes 33 individual companies and currently sits at #78 in the Zacks Industry Rank. Stocks in this group have lost about 18.7% so far this year, so DQ is performing better this group in terms of year-to-date returns.

Intrepid Potash, however, belongs to the Fertilizers industry. Currently, this 7-stock industry is ranked #5. The industry has moved +42.5% so far this year.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Daqo New Energy and Intrepid Potash as they could maintain their solid performance.

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