Daqo New Energy (DQ) closed at $35.87 in the latest trading session, marking a -0.55% move from the prior day. This change lagged the S&P 500's daily gain of 2.44%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 0.28%.
Prior to today's trading, shares of the solar panel parts maker had lost 11.9% over the past month. This has lagged the Basic Materials sector's loss of 3.8% and the S&P 500's loss of 9.65% in that time.
Investors will be hoping for strength from Daqo New Energy as it approaches its next earnings release. The company is expected to report EPS of $3.58, up 272.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $765.4 million, up 208.97% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Daqo New Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Daqo New Energy is currently a Zacks Rank #3 (Hold).
In terms of valuation, Daqo New Energy is currently trading at a Forward P/E ratio of 2.59. Its industry sports an average Forward P/E of 16.26, 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 155, 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DAQO New Energy Corp. (DQ): Free Stock Analysis Report
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