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

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is DAQO New Energy (DQ - Free Report) one of those stocks right now? 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 the Basic Materials sector. This group includes 239 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. DQ is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for DQ's full-year earnings has moved 8.33% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, DQ has gained about 3.05% so far this year. Meanwhile, the Basic Materials sector has returned an average of -22.24% on a year-to-date basis. This means that DAQO New Energy is performing better than its sector in terms of year-to-date returns.

Looking more specifically, DQ belongs to the Chemical - Specialty industry, a group that includes 33 individual stocks and currently sits at #184 in the Zacks Industry Rank. On average, this group has lost an average of 23.31% so far this year, meaning that DQ is performing better in terms of year-to-date returns.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to DQ as it looks to continue its solid performance.


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