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Daqo New Energy (DQ) Gains As Market Dips: What You Should Know

Zacks Equity Research
·2-min read

Daqo New Energy (DQ) closed at $37.82 in the latest trading session, marking a +1.53% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the solar panel parts maker had lost 1.48% in the past month. In that same time, the Basic Materials sector lost 1.41%, while the S&P 500 lost 7.66%.

Daqo New Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.58, up 272.92% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $765.4 million, up 208.97% from the prior-year quarter.

Any recent changes to analyst estimates for Daqo New Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Daqo New Energy currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Daqo New Energy is currently trading at a Forward P/E ratio of 2.67. This valuation marks a discount compared to its industry's average Forward P/E of 16.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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