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Daqo New Energy (DQ) Gains But Lags Market: What You Should Know

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Daqo New Energy (DQ - Free Report) closed at $43.95 in the latest trading session, marking a +0.11% move from the prior day. This move lagged the S&P 500's daily gain of 0.43%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Coming into today, shares of the solar panel parts maker had lost 16.21% in the past month. In that same time, the Basic Materials sector gained 3.2%, while the S&P 500 gained 3.69%.

Daqo New Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.29, up 482.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, up 347.87% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.86 per share and revenue of $3.16 billion, which would represent changes of +81.32% and +88.13%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Daqo New Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.85% higher. Daqo New Energy is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Daqo New Energy has a Forward P/E ratio of 2.46 right now. Its industry sports an average Forward P/E of 15.56, so we one might conclude that Daqo New Energy is trading at a discount comparatively.

The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 152, putting 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.

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


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