Back to top

Image: Bigstock

Has DAQO New Energy (DQ) Outpaced Other Basic Materials Stocks This Year?

Read MoreHide Full Article

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Daqo New Energy (DQ - Free Report) been one of those stocks this year? 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 a member of our Basic Materials group, which includes 241 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Daqo New Energy is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for DQ's full-year earnings has moved 26.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, DQ has returned 78.8% so far this year. In comparison, Basic Materials companies have returned an average of -8.2%. This means that Daqo New Energy is performing better than its sector in terms of year-to-date returns.

Another Basic Materials stock, which has outperformed the sector so far this year, is Intrepid Potash (IPI - Free Report) . The stock has returned 15.3% year-to-date.

Over the past three months, Intrepid Potash's consensus EPS estimate for the current year has increased 34%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Daqo New Energy belongs to the Chemical - Specialty industry, which includes 33 individual stocks and currently sits at #50 in the Zacks Industry Rank. Stocks in this group have lost about 23.1% so far this year, so DQ is performing better this group in terms of year-to-date returns.

On the other hand, Intrepid Potash belongs to the Fertilizers industry. This 7-stock industry is currently ranked #16. The industry has moved +21.4% year to date.

Daqo New Energy and Intrepid Potash could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Intrepid Potash, Inc (IPI) - free report >>

DAQO New Energy Corp. (DQ) - free report >>

Published in