The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is DAQO New Energy (DQ) 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 one of 236 companies in the Basic Materials group. The Basic Materials group currently sits at #6 within 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. DQ 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 50.54% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, DQ has returned 120.27% so far this year. At the same time, Basic Materials stocks have gained an average of 1.41%. As we can see, DAQO New Energy is performing better than its sector in the calendar year.
Looking more specifically, DQ belongs to the Chemical - Specialty industry, a group that includes 33 individual stocks and currently sits at #129 in the Zacks Industry Rank. On average, stocks in this group have lost 10.32% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DAQO New Energy Corp. (DQ): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.