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Has DAQO New Energy (DQ) Outpaced Other Basic Materials Stocks This Year?
The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Daqo New Energy (DQ - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Daqo New Energy is one of 239 companies in the Basic Materials group. The Basic Materials group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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 three months, the Zacks Consensus Estimate for DQ's full-year earnings has moved 20.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, DQ has returned 69.4% so far this year. In comparison, Basic Materials companies have returned an average of -13.2%. This means that Daqo New Energy is outperforming the sector as a whole this year.
One other Basic Materials stock that has outperformed the sector so far this year is Livent (LTHM - Free Report) . The stock is up 25.7% year-to-date.
For Livent, the consensus EPS estimate for the current year has increased 12.2% 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 34 individual companies and currently sits at #59 in the Zacks Industry Rank. On average, stocks in this group have lost 22.6% this year, meaning that DQ is performing better in terms of year-to-date returns. Livent is also part of the same industry.
Investors interested in the Basic Materials sector may want to keep a close eye on Daqo New Energy and Livent as they attempt to continue their solid performance.