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

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Daqo New Energy (DQ - Free Report) closed the most recent trading day at $46.43, moving -0.51% from the previous trading session. This move lagged the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.44%.

Coming into today, shares of the solar panel parts maker had gained 15.89% in the past month. In that same time, the Basic Materials sector gained 8.62%, while the S&P 500 gained 4.57%.

Wall Street will be looking for positivity from Daqo New Energy as it approaches its next earnings report date. The company is expected to report EPS of $7.02, up 261.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 184.52% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Daqo New Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 7.45% lower. Daqo New Energy is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note Daqo New Energy's current valuation metrics, including its Forward P/E ratio of 1.83. For comparison, its industry has an average Forward P/E of 14.17, 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 group has a Zacks Industry Rank of 184, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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