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Daqo New Energy (DQ) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Daqo New Energy (DQ - Free Report) closed at $59.77, marking a -1.76% move from the previous day. This move lagged the S&P 500's daily loss of 0.46%.

Heading into today, shares of the solar panel parts maker had lost 8.96% over the past month, lagging the Basic Materials sector's gain of 1.81% and the S&P 500's gain of 1.69% in that time.

Investors will be hoping for strength from DQ as it approaches its next earnings release. In that report, analysts expect DQ to post earnings of $3.29 per share. This would mark year-over-year growth of 10866.67%. Meanwhile, our latest consensus estimate is calling for revenue of $462 million, up 246.02% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.73 per share and revenue of $1.57 billion, which would represent changes of +465.7% and +132.49%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DQ. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.2% higher. DQ is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DQ has a Forward P/E ratio of 6.25 right now. This represents a discount compared to its industry's average Forward P/E of 17.8.

The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 117, putting it in the top 47% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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