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Are Oils-Energy Stocks Lagging DAQO New Energy (DQ) This Year?

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For those looking to find strong Oils-Energy 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 Oils-Energy peers, we might be able to answer that question.

Daqo New Energy is a member of the Oils-Energy sector. This group includes 244 individual stocks and currently holds a Zacks Sector Rank of #7. 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 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 #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for DQ's full-year earnings has moved 24.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that DQ has returned about 60.8% since the start of the calendar year. Meanwhile, the Oils-Energy sector has returned an average of 7.6% on a year-to-date basis. This shows that Daqo New Energy is outperforming its peers so far this year.

Another stock in the Oils-Energy sector, FTC Solar (FTCI - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 63.3%.

The consensus estimate for FTC Solar's current year EPS has increased 9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Daqo New Energy is a member of the Solar industry, which includes 13 individual companies and currently sits at #38 in the Zacks Industry Rank. On average, stocks in this group have gained 31.5% this year, meaning that DQ is performing better in terms of year-to-date returns. FTC Solar is also part of the same industry.

Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Daqo New Energy and FTC Solar as they could maintain their solid performance.


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