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Is DAQO New Energy (DQ) Stock Outpacing Its Basic Materials Peers This Year?

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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 245 companies in the Basic Materials group. The Basic Materials group currently sits at #2 within the Zacks Sector Rank. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. DQ is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for DQ's full-year earnings has moved 45.68% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, DQ has returned 18.41% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 15.22% on average. This means that DAQO New Energy is outperforming the sector as a whole this year.

To break things down more, DQ belongs to the Chemical - Specialty industry, a group that includes 36 individual companies and currently sits at #104 in the Zacks Industry Rank. On average, this group has gained an average of 3.44% 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.


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