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Can DAQO New Energy (DQ) Run Higher on Strong Earnings Estimate Revisions?

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DAQO New Energy Corp. (DQ - Free Report) is an offshore drilling contractor company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on DQ’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that DAQO New Energy could be a solid choice for investors.

Current Quarter Estimates for DQ

In the past 30 days, one estimate has gone higher for DAQO New Energy while none has gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 75 cents a share 30 days ago, to $1.28 a share today, a move of 70.7%.

Current Year Estimates for DQ

Meanwhile, DAQO New Energy’s current year figures are also looking quite promising, with three estimates moving higher in the past month, compared to one lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 4.98 per share 30 days ago to $5.77 per share today, an increase of 15.9%.

DAQO New Energy Corp. Price and Consensus

Bottom Line

The stock has also started to move higher lately, adding 27.6% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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