Investors focused on the Basic Materials space have likely heard of DAQO New Energy (DQ - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? 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 a member of our Basic Materials group, which includes 242 different companies and currently sits at #3 in 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. DQ 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 48.65% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, DQ has returned 1.38% so far this year. At the same time, Basic Materials stocks have gained an average of 0.86%. As we can see, DAQO New Energy is performing better than its sector in the calendar year.
Looking more specifically, DQ belongs to the Chemical - Specialty industry, a group that includes 30 individual stocks and currently sits at #106 in the Zacks Industry Rank. On average, this group has lost an average of 0.55% so far this year, meaning that DQ is performing better in terms of year-to-date returns.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to DQ as it looks to continue its solid performance.