Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. DAQO New Energy (DQ - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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 the Basic Materials sector. This group includes 243 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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 90 days, the Zacks Consensus Estimate for DQ's full-year earnings has moved 43.62% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, DQ has gained about 7.56% so far this year. At the same time, Basic Materials stocks have lost an average of 1.35%. 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 36 individual stocks and currently sits at #230 in the Zacks Industry Rank. Stocks in this group have lost about 1.47% so far this year, so DQ is performing better this group in terms of year-to-date returns.
Investors with an interest in Basic Materials stocks should continue to track DQ. The stock will be looking to continue its solid performance.