Back to top

Image: Bigstock

Are Basic Materials Stocks Lagging DAQO New Energy (DQ) This Year?

Read MoreHide Full Article

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. 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 one of 241 companies in the Basic Materials group. The Basic Materials group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Daqo New Energy is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DQ's full-year earnings has moved 34.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, DQ has gained about 57.8% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 5.4% on average. This means that Daqo New Energy is performing better than its sector in terms of year-to-date returns.

Another Basic Materials stock, which has outperformed the sector so far this year, is Intrepid Potash (IPI - Free Report) . The stock has returned 41.8% year-to-date.

Over the past three months, Intrepid Potash's consensus EPS estimate for the current year has increased 68.2%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Daqo New Energy belongs to the Chemical - Specialty industry, which includes 33 individual stocks and currently sits at #72 in the Zacks Industry Rank. Stocks in this group have lost about 15.3% so far this year, so DQ is performing better this group in terms of year-to-date returns.

In contrast, Intrepid Potash falls under the Fertilizers industry. Currently, this industry has 7 stocks and is ranked #21. Since the beginning of the year, the industry has moved +30.2%.

Investors interested in the Basic Materials sector may want to keep a close eye on Daqo New Energy and Intrepid Potash as they attempt to continue their solid performance.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Intrepid Potash, Inc (IPI) - free report >>

DAQO New Energy Corp. (DQ) - free report >>

Published in