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

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Daqo New Energy (DQ - Free Report) closed at $43.37 in the latest trading session, marking a +1.45% move from the prior day. This move outpaced the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 0.89%, while the tech-heavy Nasdaq added 0.03%.

Prior to today's trading, shares of the solar panel parts maker had gained 7.09% over the past month. This has outpaced the Basic Materials sector's gain of 6.99% and the S&P 500's loss of 1.81% in that time.

Daqo New Energy will be looking to display strength as it nears its next earnings release. On that day, Daqo New Energy is projected to report earnings of $3.58 per share, which would represent year-over-year growth of 272.92%. Our most recent consensus estimate is calling for quarterly revenue of $765.4 million, up 208.97% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Daqo New Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 3.39% lower. Daqo New Energy is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Daqo New Energy is holding a Forward P/E ratio of 3.06. For comparison, its industry has an average Forward P/E of 16.96, which means Daqo New Energy is trading at a discount to the group.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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