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? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
DAQO New Energy is one of 243 individual stocks in the Basic Materials sector. Collectively, these companies sit at #16 in 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 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).
Within the past quarter, the Zacks Consensus Estimate for DQ's full-year earnings has moved 43.62% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, DQ has gained about 1.35% so far this year. In comparison, Basic Materials companies have returned an average of -7.59%. 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 #237 in the Zacks Industry Rank. On average, this group has lost an average of 2.82% so far this year, meaning that DQ is performing better 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.