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Daqo New Energy (DQ) Dips More Than Broader Markets: What You Should Know

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Daqo New Energy (DQ - Free Report) closed the most recent trading day at $49.90, moving -1.67% from the previous trading session. This change lagged the S&P 500's daily loss of 1.45%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 3.06%.

Heading into today, shares of the solar panel parts maker had gained 19.81% over the past month, outpacing the Basic Materials sector's loss of 2.83% and the S&P 500's loss of 3.83% in that time.

Daqo New Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.95, down 29.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $886.1 million, down 30.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.85 per share and revenue of $3.93 billion. These totals would mark changes of -16.81% and -14.72%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Daqo New Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 22.07% lower within the past month. Daqo New Energy is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Daqo New Energy's current valuation metrics, including its Forward P/E ratio of 2.56. This valuation marks a discount compared to its industry's average Forward P/E of 16.02.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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