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Is DAQO New Energy (DQ) Outperforming Other Basic Materials Stocks This Year?

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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Daqo New Energy (DQ - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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 242 companies in the Basic Materials group. The Basic Materials group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Daqo New Energy is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for DQ's full-year earnings has moved 39.3% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, DQ has returned 72.4% so far this year. Meanwhile, stocks in the Basic Materials group have lost about 14.4% on average. This means that Daqo New Energy is outperforming the sector as a whole this year.

Brigham Minerals (MNRL - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 12.8%.

In Brigham Minerals' case, the consensus EPS estimate for the current year increased 23.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Daqo New Energy belongs to the Chemical - Specialty industry, a group that includes 35 individual companies and currently sits at #71 in the Zacks Industry Rank. This group has lost an average of 26.2% so far this year, so DQ is performing better in this area.

On the other hand, Brigham Minerals belongs to the Mining - Miscellaneous industry. This 47-stock industry is currently ranked #184. The industry has moved -11.5% year to date.

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


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