Back to top

Image: Bigstock

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

Read MoreHide Full Article

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? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Daqo New Energy is one of 242 companies in the Basic Materials group. The Basic Materials group currently sits at #14 within the Zacks Sector Rank. 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 #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for DQ's full-year earnings has moved 37.5% 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 60.5% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of -8.7%. This shows that Daqo New Energy is outperforming its peers so far this year.

Livent (LTHM - 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 2.1%.

The consensus estimate for Livent's current year EPS has increased 100% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Daqo New Energy belongs to the Chemical - Specialty industry, which includes 35 individual stocks and currently sits at #154 in the Zacks Industry Rank. On average, this group has lost an average of 21% so far this year, meaning that DQ is performing better in terms of year-to-date returns. Livent is also part of the same industry.

Investors with an interest in Basic Materials stocks should continue to track Daqo New Energy and Livent. These stocks will be looking to continue their solid performance.


In-Depth Zacks Research for the Tickers Above


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


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

Livent Corporation (LTHM) - free report >>

Published in